Kuala lumpur: The Malaysian rubber market is expected to trade higher next week, supported by stronger demand and concerns over potential supply constraints.

According to BERNAMA News Agency, the Malaysian Rubber Glove Manufacturers Association (MARGMA) indicated that demand is anticipated to strengthen, particularly in China, which has committed to additional fiscal policy measures aimed at supporting economic growth. MARGMA highlighted that the demand for premium and sustainably sourced natural rubber is also expected to rise as Malaysian glove manufacturers focus more on traceability and sustainability to meet the European Union Deforestation Regulation (EUDR) requirements.

Additionally, MARGMA pointed out that ongoing El Ni±o concerns could potentially disrupt rubber production and constrain supply across major rubber-producing countries.

Industry expert Denis Low noted that the Malaysian rubber market is likely to trend slightly higher next week, driven by potential restocking demand from China and firmer crude oil prices. He remarked that geopolitical uncertainties and currency volatility might continue to influence market sentiment. Reports of significant dry rubber replenishment in China could provide upward momentum if buying volumes are substantial, while higher oil prices may support natural rubber prices.

The supply and demand dynamics remain relatively balanced, although foreign exchange volatility and adverse weather in major producing regions could influence prices. On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 38 sen to 947.0 sen per kilogramme, while latex in bulk decreased by nine sen to 679.5 sen per kilogramme.