KUALA LUMPUR, Feb 6 (Bernama) — The Malaysian rubber market is likely to trend higher this week on improved sentiment for the commodity following the move by Thailand, Indonesia and Malaysia agreed to implement the Agreed Export Tonnage Scheme, effective March 1, 2016 aimed at shoring up flagging natural rubber prices.
The International Tripartite Rubber Council said under the scheme, the three countries, which account for 67 per cent of world rubber production, will withdraw exports of 615,000 tonnes of natural rubber for six months from March 1 to August 31, 2016.
Dwindling prices have had a direct effect on the income of rubber smallholders in the three countries.
Dealers are optimistic that rubber prices would improve in the immediate term as supply will be reduced.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s sellers’ official physical price for tyre-grade SMR 20 increased 0.5 sen to 446 sen a kg while latex-in-bulk trimmed eight sen to 361 sen a kg.
The unofficial closing price for tyre-grade SMR 20 increased five sen to 449.5 sen a kg while latex-in-bulk eased 6.5 sen to 361 sen a kg.
— BERNAMA
