The Malaysian rubber market is expected to rebound next week as more traders start to return from celebrating Chinese New Year, a dealer said.
He said the local market would also likely be tracking the recovery on the Tokyo Commodity Exchange (TOCOM) next week as prices finished above the key support of 320 yen.
“The TOCOM prices fell this week, hurt by a firmer yen and concerns over Europe’s economic outlook.
“The yen was substantially firmer ahead of the G20 meeting this weekend, encouraging investors to sell contracts to stop losses, with concerns about weak demand in Europe still weighing in on the rubber market,” he added.
Another dealer expects renewed demand in the local rubber market as more traders return from the holiday break.
“The market was a little quiet this week as most traders took a week off due to Chinese New Year and the school holidays,” he said.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR20 ended 16 sen lower at 942 sen a kg while latex-in-bulk eased three sen to 622 sen.
The unofficial closing price for tyre-grade SMR20 lost 16 sen to 942 sen a kg, while latex-in-bulk shed four sen to 621 sen a kg.
Source: BERNAMA
