By Zufazlin Baharuddin
KUALA LUMPUR, Oct 19 (Bernama) — The local rubber market is expected to trade range-bound with an upside bias next week, driven primarily by replenishment activities, according to industry expert Denis Low.
He noted that the market is facing various uncertainties, with the most unpredictable factor being the increasingly erratic weather patterns, particularly heavy and persistent rains, leading to volatility in prices and demand.
Speaking to Bernama, Low said the impending monsoon season in the rubber-producing region is going to hamper rubber productivity and may boost stocking activities.
“In any case, with the lack of supply, the rubber market has equalised itself with the lack of demand too as the Chinese economy is struggling with its homing woes,” he added.
Another dealer said the local rubber prices will continue to track the performance of regional rubber futures markets, the strength of the ringgit against the US dollar, benchmark crude oil prices, and the tight supply of natural rubber, coupled with the expectation of smaller United States (US) interest rate cuts.
He said market operators will continue to monitor updates on the US and China economies, especially cues on interest rate cuts, China’s stimulus implementation, the developments of the European Union Deforestation Regulation (EUDR) and Middle East geopolitical conflicts.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 21 sen to 872 sen per kilogramme (kg) from 851 sen per kg last week.
Latex-in-bulk increased by nine sen to 757.5 sen per kg from 748.5 sen per kg.
At 5 pm, physical SMR 20 stood at 871 sen per kg, while latex-in-bulk was at 757 sen per kg.
— BERNAMA
