Malaysia: Rubber Market Likely To Rebound Next Week

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KUALA LUMPUR — The Malaysian rubber market is expected to rebound next week on renewed demand from , but any upside would likely be capped by the firmer trend of the ringgit against the dollar currently, dealers said.

A dealer said additionally, the movement of the benchmark rubber futures on the Tokyo Commodity Exchange (TOCOM) would also influence prices on the domestic market.

The traders are anticipating a rebound in rubber prices as China returns to make fresh purchases for the Chinese New Year next month.

Meanwhile, the said Thailand, and Indonesia had started a cut in exports of natural rubber for the implementation of the Fifth Agreed Export Tonnage Scheme with immediate effect from last Wednesday.

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It said members of the International Tripartite Rubber Council would cut natural rubber exports by 350,000 tonnes between Dec 22 and March 31, 2018.

For the week just-ended, the market was traded mostly lower in line with the weaker performance of the regional rubber futures market.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for -grade SMR 20 was 8.5 sen lower at 572.0 sen a kg, while latex-in-bulk increased 1.5 sen to 463.5 sen a kg.

The 5 pm unofficial closing price for SMR 20 decreased 15 sen to 575.0 sen a kg, but latex-in-bulk rose 0.5 sen to 463.0 sen a kg.

  • Bernama

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