The Malaysian rubber market is likely to be bearish again next week in tandem with the regional sentiment amid uncertainties in the global economy, dealers said.
A dealer said the local market was also expected to remain quiet as buyers await more fresh leads.
“In addition to the slowdown in global economic growth and the debt crisis in the European Union, the subdued rubber purchase by China is of more concern for the rubber market,” he said.
He said the slow economic growth has impacted the demand for vehicles and it has affected the demand for tyres and car rubber components.
Meanwhile, a Hong Leong Investment Bank Research note said latex (natural rubber and synthetic) prices were likely to be capped on the backdrop of the global car industry slowdown.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 fell 31.5 sen to 890.5 sen per kg, while latex-in-bulk eased 20 sen to 620 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 fell 43.5 sen to 872 sen per kg and latex-in-bulk dropped 22 sen to 615.5 sen per kg. –
Source: -BERNAMA
