KUALA LUMPUR — Malaysian rubber market is expected to rebound next week as inventory data revealed that rubber production is declining on year-on-year basis amidst increasing demand for the commodity.
For the week just ended, the Department of Statistics reported that Malaysia’s natural rubber (NR) production decreased 18.6 per cent year-on-year.
However, Malaysia’s NR production rose 0.2 per cent to 35,789 tonnes in May 2018 from 35,726 tonnes in April.
“The local rubber market would also continue to track the rubber futures movement on the benchmark Tokyo Commodity Exchange and crude oil performance next week,” he said.
The dealer said that the regional rubber futures markets were on the downtrend for the whole week.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s sellers official physical price for tyre-grade SMR 20 added four sen to 521.5 sen per kg, while latex-in-bulk lost 2.5 sen to 408.5 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 slipped one sen to 523 sen per kg and latex-in-bulk unchanged at 412 sen per kg.
