Malaysian Rubber Market Likely To Stay Subdued Amid Demand Uncertainty

Kuala Lumpur: The Malaysian rubber market is expected to remain subdued next week due to a prevailing bias towards weaker demand. Industry expert Denis Low noted that there is some volatility in the rubber market, with prices and demand moving like a pendulum. He attributed this instability to lingering global uncertainty stemming from United States President Donald Trump's tariff policies.

According to BERNAMA News Agency, Low explained that the volatility is further compounded by climate change phenomena, which are causing unpredictable weather conditions worldwide. This has made stocking up and replenishment two diverse actions that the rubber market finds challenging to reconcile. He pointed out that speculative buying or non-buying can disrupt the market's supply and demand dynamic.

Additionally, Low mentioned that the Thai Meteorological Department had forecasted outbreaks of summer storms to begin in the Northeast region and gradually expand to most other regions. This weather forecast adds another layer of uncertainty to the market conditions.

On a week-to-week basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 2.44 percent, or 18 sen, to 756.0 sen per kilogramme (kg) while latex in bulk slightly decreased by about 0.74 percent, or 4.5 sen, to 604.0 sen per kg.

The Kuala Lumpur rubber market will be closed on May 12, 2025, in conjunction with the Wesak Day public holiday and is set to resume operations on May 13.