Kuala lumpur: The Malaysian rubber market is expected to experience a mixed trend next week as volatility in global commodity and financial markets continues to influence regional rubber futures, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).
According to BERNAMA News Agency, the association highlighted key factors likely to drive the market, including the latest United States (US) tariffs, the ringgit-US dollar exchange rate, and fluctuations in benchmark crude oil prices. MARGMA believes the tariffs could signal a slowing US economy, as they are expected to drive up the cost of imported raw materials. Additionally, speculation regarding the appointment of the next US Federal Reserve chair is expected to contribute to market uncertainty.
The association added that developments related to US trade tariffs and interest rate policies, as well as geopolitical tensions in the Middle East, would be closely monitored by traders. On the supply side, MARGMA noted that heavy rains anticipated in major rubber-producing countries, particularly Thailand, could disrupt supply. In Malaysia, natural rubber production rose 5.9 per cent month-on-month in June 2025, indicating healthy production capacity.
It was noted that the 90-day extension of the tariff pause between the US and China, together with China's 7.2 per cent export surge in July and growth in its services sector, could lend support to demand. Strong exports from the Chinese automobile sector are also seen as positive for the market.
Meanwhile, industry expert Denis Low mentioned that the market is likely to trade sideways with a slight downward bias given the prevailing uncertainty. He emphasized that industries must take notice of the ongoing grappling with tariffs by India and China, with China in a 90-day grace period and India facing a 50 per cent across-the-board tariff. Low remarked on the potential disruptions from weather conditions, with forecasts in Malaysia and the Thai Meteorological Department predicting heavy rain and strong winds.
Low also pointed out the volatility in oil and gas prices, which could affect businesses, and noted that the fluctuations in the US dollar can be detrimental to the balance of payment. Such acute volatility represents uncertainties and may warrant caution and fear simultaneously.
On a week-to-week basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) rose 10.5 sen to 736.5 sen per kilogramme, while latex in bulk increased by 3.0 sen to 572 sen per kg.