By Farhand Poniman
KUALA LUMPUR — The Malaysian rubber market is expected to decline next week on profit-taking, given the dwindling demand and ample supply.
A dealer said there was a wide difference between the rubber price on a Friday-to-Friday basis, which would likely trigger a technical correction next week.
“Market sentiment is also bearish at the moment, with European styrene butadiene rubber (SBR) spot prices expected to decline in the coming weeks, due to dwindling demand and ample supply.
“High inventories and stable-to-reduced offers in July have weighed on prices, with demand also dampened by the slow summer holiday period,” he told Bernama, adding, demand was expected to pick up between end-August and early September.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s sellers official physical price for tyre-grade SMR 20 gained 14 sen to 535.5 sen per kg, while latex-in-bulk improved 7.5 sen to 416 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 increased 14 sen to 537 sen per kg, and latex-in-bulk was four sen higher at 416 sen per kg.
