The Malaysian rubber market continued its upward trend from last Friday’s closing following higher opening at the Tokyo Commodity Exchange and Singapore Exchange prices today, besides the weakening of the ringgit.
According to the International Rubber Consortium Ltd’s (IRCo) official statement as compared to the previous week’s assessment, the current stock level available for sales in the International Tripartite Rubber Council (ITRC) countries was low, a dealer said.
“It said the low stock level will be further aggravated in the coming months with wintering expected to be severe in the three natural rubber producing countries — Malaysia, Thailand and Indonesia.
“The consortium is of the view that the recent sharp fall in natural rubber prices has resulted in the commodity being traded at a discount to synthetic rubber, which is against the norm for the last few years,” the dealer said.
The consortium said the IRCo was of the view that prevailing natural rubber prices are unreasonably low and would immediately advise the respective trade associations in the ITRC countries to jointly encourage their members not to offer the commodity at prevailing low price.
The consortium will also propose to the ITRC countries to accelerate and enhance the implementation of the Supply Management Scheme, the dealer added.
At noon, the Malaysian Rubber Board official physical price for tyre-grade SMR 20 rose 11 sen to 620 sen a kg while latex-in-bulk improved 3.5 sen to 456.5 sen a kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 increased 19.5 sen to 630.5 sen a kg while latex-in-bulk inched up 3.5 sen to 458.5 sen a kg.– Bernama