Kuala lumpur: The Kuala Lumpur rubber market is anticipated to maintain its stability in terms of prices and demand, although there is a slight expectation of a downward trend next week. This forecast comes amid rising costs, geopolitical uncertainties, and a balanced supply-demand situation, according to industry expert Denis Low.

According to BERNAMA News Agency, Low indicated that despite the existing uncertainties, the market is likely to remain relatively resilient. The demand is primarily driven by replenishment activities rather than speculative investments. He noted that although there could be some volatility due to higher costs and uncertainties, it is expected to be manageable under current conditions.

Low further explained that the rubber sector's resilience is supported by the equilibrium in supply and demand dynamics. The weather remains stable, and production levels are sufficient to meet the slightly increased demand, despite a minor supply disruption from an African producer.

Additionally, Low mentioned that the Thai Meteorological Department forecasts heavy rain in some provinces, with thunderstorms expected in various parts of Malaysia. These weather conditions could potentially impact the market.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) suggested that the rubber market might experience an upward trend next week. This potential increase is attributed to supply-side challenges caused by volatile weather across Southeast Asia. Furthermore, rising oil prices could pressure logistics and raw materials, although the delay in new United States tariffs on Chinese goods might ease trade concerns.

The Malaysian Rubber Board's reference price for SMR 20 experienced a decline of 21 sen to 977.5 sen per kilogramme on a Friday-to-Friday basis, while latex in bulk increased by 4.5 sen to 717 sen per kilogramme. The rubber market observed a closure on Wednesday, September 16, in celebration of Malaysia Day.