Malaysian rubber prices are expected to benefit from the expected bull market outlook for rubber next week, driven by better demand in China, a dealer said.
The dealer said China, the world’s largest consumer for rubber, is anticipated to have a better economic growth next year.
“There are many factors that will lift the rubber price, including reports of Chinese buyers stocking up before the-week long Lunar New Year in early February 2013, coupled with the low production in Thailand, Indonesia and Malaysia during the present holiday season,” he noted.
The commodity’s anticipated better performance would also be influenced by the global recovery and a boost in raw-material demand, accelerated by the monetary and fiscal stimulus from Japan to China and the United States.
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Bursa Malaysia and its subsidiaries will be closed on Jan 1, 2013 for the New Year holiday.
During the week just-ended, rubber prices closed on a weaker note on Monday following a half-day trade ahead of Christmas holiday on Tuesday. The weak note was caused by the market’s negative reaction as the earlier optimism for the US fiscal cliff progress was dented after the Republican lawmakers cancelled a vote on a tax-cut plan.
The local market, however, picked up on Wednesday onwards, in line with its regional peers, benefiting from the weaker yen against the US dollar as well as concerns over tight supply for the commodity.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s sellers’ official physical price for tyre-grade SMR 20 increased 22 sen to 903 sen per kg, while latex-in-bulk rose 19.5 sen to 601 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 improved 23 sen to 904 sen per kg and latex-in-bulk rose 24.5 sen to 604.5 sen per kg.
BERNAMA
