The Malaysian rubber market is likely to trade higher next week on expectations that global rubber demand will start to pick up in the coming weeks, dealers said.
A dealer said the market will get some boost from a recent report by the Association of Natural Rubber Producing Countries which states that in November, demand for natural rubber in 2012 is expected to be 3.834 million tonnes compared to last month’s estimated 3.768 million tonnes.
He said another positive sentiment is the Thailand government’s intervention plan to buy its own local rubber products, which could indirectly help support rubber prices regionally.
He added market sentiment would also be supported by the world’s third largest national economy, Japan, whose factory output unexpectedly rose in October for the first time in four months.
“There is also some hope for the global economy following better US economic growth data in the third quarter, which would attract traders’ appetite to participate in commodity markets including rubber,” he added.
Back home, he said, our local market is still monitoring regional market price movements like in the Tokyo Commodity Exchange in the absence of internal catalysts.
Throughout the week just ended, rubber prices fell for four consecutive days due to lack of demand but prices turned higher on Friday on technical adjustment ahead of the weekend.
On a Friday-to-Friday basis, the Malaysian Rubber Board sellers’ official physical price for tyre-grade SMR20 fell 7.5 sen to 847.0 sen per kg and latex-in-bulk declined 11.5 sen to 564.0 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR20 decreased 4.5 sen to 851.5 sen per kg and latex-in-bulk was down eight sen to 566.5 sen per kg.
BERNAMA
