KUALA LUMPUR — The Malaysian rubber market is expected to face uncertain prospects next week as traders are closely monitoring the currency and crude oil movements, said a dealer.
He said the ringgit was expected to be traded at the current level.
However, the fluctuations of the benchmark crude oil prices would be significant for rubber prices.
“The trend in oil prices will determine the pricing of synthetic rubber, which is competitor for natural rubber,” he said.
The encouraging economic data from China and US would also have spillover effects on rubber prices, he said.
For the week just-ended, rubber prices were mixed, weighed by oil prices but at the same time they were supported by positive updates in the regional markets.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 gained 11.5 sen to 633 sen from 621.5 sen a kg, and latex-in-bulk declined five sen to 501 sen a kg from 506 sen a kg.
The 5 pm closing price for tyre-grade SMR 20 was 18 sen better at 621.5 sen a kg, and latex-in-bulk added half-a-sen sen to 502.5 sen a kg.
