Kuala lumpur: The rubber market is expected to trend higher next week, boosted by heightened demand for the commodity amid a supply disruption due to the ongoing crisis in West Asia, an expert revealed.

According to BERNAMA News Agency, industry expert Denis Low highlighted that the continuing conflict in West Asia is causing significant disruption to industry and commerce. He noted that the blockage in the Strait of Hormuz is affecting oil and gas supplies, which in turn is causing collateral damage to various industries, potentially leading to factory shutdowns.

Low further explained that the rubber trees are currently wintering, with this phase expected to conclude by the end of April or early May. Despite the anticipated improvement in productivity, the present shortage is intensified by increased demand due to the war, resulting in a volatile market outlook.

Additionally, Low mentioned weather-related challenges, including forecasts of extreme heat, hazy skies, and isolated thunderstorms in Thailand, alongside a thunderstorm warning in Malaysia, which could further impact supply. He also pointed out that fluctuating oil prices and a volatile US dollar contribute to market uncertainties, necessitating caution.

The Kuala Lumpur rubber market observed a closure on April 3 for Good Friday and is set to resume operations next Monday. From Friday to Thursday, the Malaysian Rubber Board reported an increase in the reference price for Standard Malaysian Rubber 20 (SMR 20) by 16.5 sen to 819.5 sen per kilogram, while latex in bulk surged by 38 sen to 727.5 sen per kilogram.