By Sharifah Pirdaus Syed Ali
KUALA LUMPUR — The Malaysian rubber market is likely to trade lower next week, amid oversupply concerns and a slowing Chinese economy, a dealer said.
The benchmark Tokyo Commodity Exchange (TOCOM) rubber futures hit its lowest level, in nearly five months, on Thursday taking the cue from the extended losses in Shanghai futures.
“Bearish sentiment in Shanghai rubber futures were influenced by weaker commodity prices especially in copper and other industrial metals, as data earlier this week showed Chinese industrial output and fixed asset investment growth had slowed in October,” he said.
The uncertainties in regional futures market coupled with a stronger ringgit against US dollar would continue to set the tone for the rubber futures market,” he told Bernama.
However, the ongoing wet weather, which affected rubber output, coupled with the La Nina phenomenon from November 2017 to January 2018 would limit losses, he added.
Expectation that major world crude oil producers will extend a supply-cut deal, later this month, would also support rubber prices.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 decreased 17.5 sen to 565.0 sen a kg while latex-in-bulk fell 13.5 sen to 467 sen a kg.
The 5 pm unofficial closing price for SMR 20 dropped 19 sen to 569.0 sen a kg and latex-in-bulk slipped 10.0 sen to 467.0 sen a kg.
