KUALA LUMPUR — The Malaysian rubber market is likely to trend lower next week, tracking the expected weaker performance on the benchmark Tokyo Commodity Exchange’s (TOCOM) rubber futures, a dealer said.
The dealer said TOCOM futures market, which sets the tone for rubber prices in Southeast Asia, had been slowly recovering since late March, amid increasing supply and muted demand.
“We expect the commodity to remain weak due to high inventories in the medium and long term and dented demand,” the dealer said, adding the performance of other commodities, especially oil prices, could also influence the rubber market next week.
The weaker sentiment was also weighed down by the renewed trade war between the US with the European Union, Canada and Mexico.
For the week just-ended, the local rubber market finished mixed, pressured by the decline in crude oil prices.
BETTER REGIONAL PERFORMANCE
Nevertheless, losses were capped by the better performance in regional rubber futures market following news that China is on a steady economic growth path.
The market was closed on Tuesday for Wesak Day celebration.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 fell 10.5 sen to 558.5 sen per kg from 569 sen per kg last week, while latex-in-bulk dropped 27.5 sen to 472.5 sen per kg from 500 sen per kg.
The 5 pm unofficial closing price for SMR 20 slipped 12 sen to 558.5 sen per kg from 570.5 sen a kg, while latex-in-bulk lost 34.5 sen to 466.5 sen from 501 sen a kg.
