KUALA LUMPUR — The Malaysian rubber market is likely to rebound slightly next week, supported by a positive outlook for the commodity on the domestic market, as well as the expectation of a recovery in global oil prices, a dealer said.
However, he said, the recovery process might be limited by the cautious movement of the ringgit versus the US dollar next week too.
Recently, the Plantation Industries and Commodities Ministry called for road construction projects throughout the country, including the Pan Borneo Highway, to be required to use rubber premix to maximise the usage of the commodity produced by smallholders in the country and to stabilise its price.
Deputy Minister, Datuk Datu Nasrun Datu Mansur, said based on the ministry’s study, each kilometre of rubberised road would use 4.2 tonnes of rubber.
“Our study is now complete and we hope the Public Works Department will compel all road construction projects in the country to use rubber. The move would benefit rubber smallholders and if the Pan Borneo Highway uses it, the industry will be invigorated,” he was quoted as saying in Parliament.
CURB SUPPLIES
Meanwhile, the dealer said the Organisation of Petroleum Exporting Countries (OPEC) and its allies have also continued to curb supplies, which might push oil prices higher moving forward.
“Traders will also be looking at developments following the proposed imposition of new tariffs totalling up to US$60 billion on Chinese imports to the United States,” he added.
For the week just ended, rubber prices were mostly lower, tracking weaker regional market performance and a bearish outlook on the global economy.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 lost 41 sen to 524.5 sen a kg, while latex-in-bulk was 22 sen lower at 448 sen a kg.
The 5 pm unofficial closing price for SMR 20 decreased 46.5 sen to 518 sen a kg, and latex-in-bulk fell 30.5 sen to 442 sen a kg.
- Bernama
