KUALA LUMPUR — The Malaysian rubber market is expected to be quiet and trade within a tight range next week, amid the upcoming 14th General Election that will take place on May 9, said a dealer.
The dealer said demand for natural rubber (NR) dipped as importing countries such as China – the largest rubber importer, had already replenished their stocks level earlier ahead of the autumn season.
“During the autumn season, which is expected to continue until mid-May, production of NR is not at its best level.
“On another note, supply from the largest producer, Thailand, alongside Vietnam had also increased, causing disruption to the market,” the dealer told Bernama.
An agreement by Thailand, Indonesia, and Malaysia in late December to reduce exports by 350,000 metric tonnes had also expired on March 31, thus the oversupply of the commodity in the market.
However, the dealer said the narrow price movement for NR would be positive as this would mean reduced risk for buyers and smallholders.
“When prices are even, buyers and smallholders could enjoy a better price as this would not hold them back when prices go too high or low,” the dealer added.
Meanwhile, the Statistics Department on Friday reported that NR exports in March decreased 37.8 per cent or RM211.9 million year-on-year to RM349.1 million due to the decline in the average unit value (-35.8 per cent) and export volume (-3.1 per cent).
While for month-on-month basis, NR exports rose RM46.1 million or 15.2 per cent from RM303.0 million due to the higher increase in export volume (+16.2 per cent) as average unit value fell 0.8 per cent.
The dealer added that rubber prices would also move in tandem with other commodities, as well as regional futures markets like the Tokyo Commodity Exchange and Shanghai Futures Exchange.
For the week just-ended, the market traded mostly higher in tracking the performances of regional rubber futures markets, the ringgit movement against the US dollar, as well as crude oil price movement.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 increased 21 sen to 557 sen a kg from 536 sen a kg last week and latex-in-bulk rose 18.5 sen to 474.50 sen a kg from 456.00 sen a kg.
The 5 pm unofficial closing price for SMR 20 rose 20 sen to 558.00 a kg from 538.00 sen a kg, while latex-in-bulk increased 24 sen to 479.00 sen a kg from 455 sen a kg.
The market was closed on Tuesday for Labour Day.
