Kuala lumpur: The rubber market in Kuala Lumpur is expected to experience a sideways trade with a slight downward bias in the upcoming week, primarily due to ongoing geopolitical uncertainty linked to the stalled United States-Iran peace deal.

According to BERNAMA News Agency, the Malaysian Rubber Glove Manufacturers Association (MARGMA) noted that dealers will be closely observing these developments, as any prolonged stalemate could hinder the anticipated alleviation of disruptions within the global supply chain. The overall market sentiment is also expected to be affected by weaker regional rubber futures and softer crude oil prices.

Industry expert Denis Low commented that the market is likely to witness subdued trading next week, with steady replenishment buying keeping prices more or less stable, albeit slightly lower. Low highlighted that shipping and commercial activities have cautiously resumed, with the movement of goods gradually returning to normal despite persistent geopolitical uncertainties. Additionally, the normalization of oil supply in the coming days and the reduction in crude oil prices are anticipated to help decrease overall costs across the supply chain.

Low further mentioned that favorable weather conditions in the rubber-producing regions have improved the supply situation, contributing to more stable prices. This is a marked change from a few weeks ago when there was a sharp increase in prices. He also noted that demand is expected to remain steady, with buyers no longer needing to engage in speculative purchasing.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 8.0 sen, settling at 872.50 sen per kilogramme, while latex-in-bulk dropped by 23.5 sen to 746 sen per kilogramme.