By Niam Seet Wei
KUALA LUMPUR — The Malaysian rubber market is likely to trade mixed to higher next week, as the stronger ringgit versus the US dollar, along with firmer crude oil prices were expected to affect the commodity’s price, a dealer said.
The local note had been on the rise for the past week due to the weakening greenback and the uptrend was expected to prevail until next week.
“This will curb demand for local rubber.
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“The Organisation of Petroleum Exporting Countries and its allies are also reportedly discussing extending supply cuts,” he told Bernama.
The dealer said the commitement among Malaysia, Thailand and Indonesia to increase domestic consumption of natural rubber would also lend support to the commodity.
The International Tripartite Rubber Council (ITRC) Ministerial Committee Meeting, held in Bangkok last Friday, had agreed that Malaysia, Thailand and Indonesia boost domestic consumption of natural rubber to deal with the commodity’s unstable price and excess supply in the market.
Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said among the efforts that could be undertaken include building more rubberised roads and increasing rubber applications in various sectors such as transportation and infrastructure.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 and latex-in-bulk fell 25.5 sen each to 674.5 sen a kg and 566.0 sen a kg, respectively.
The 5 pm unofficial closing price for SMR 20 eased 22 sen to 664.5 sen a kg and latex-in-bulk gave up 30 sen to 560 sen a kg. The market will be closed on Sept 22 for the Awal Muharram public holiday.
