Kuala Lumpur: The Malaysian rubber market is anticipated to remain quiet next week, with traders primarily focusing on replenishing their stocks, as stated by industry expert Denis Low. He suggested that prices and demand would likely remain stable, albeit with a tendency towards lower levels.
According to BERNAMA News Agency, Low noted that the uncertainty in the marketplace is fueled by the ongoing tariffs imposed by the United States, which has led to many manufacturers and traders adopting a wait-and-see approach. Additionally, he highlighted that the volatility could be exacerbated by adverse weather conditions, including heat and summer storms in certain parts of Thailand, and thunderstorms, heavy rainfall, and strong winds predicted across most states in Malaysia.
The Malaysian Rubber Glove Manufacturers Association (Margma) has expressed that the rubber market outlook for next week is expected to continue its downward trend. This is attributed to mixed signals from the ongoing US-China trade war and existing geopolitical tensions. Uncertainties surrounding US trade policies are projected to negatively impact the market.
However, the association mentioned that the natural rubber supply from major producing countries and potential stimulus measures from China might help mitigate further losses. The prices are anticipated to follow the trend of regional rubber futures markets, as well as the strength of the ringgit against the US dollar and benchmark crude oil prices.
Over the past week, the rubber market exhibited mixed trading patterns, largely influenced by regional rubber futures, uncertain US trade policies, crude oil prices, and the ringgit's performance against the US dollar. On a weekly basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 1.5 sen to 752.50 sen per kilogram, while the price of latex in bulk decreased by 26.0 sen to 625.50 sen per kilogram.
The Kuala Lumpur rubber market was closed on Friday, April 18, in observance of Good Friday.