KUALA LUMPUR, Sept 26 — The Kuala Lumpur rubber market is expected to remain volatile next week amid bad weather conditions and ongoing geopolitical tensions, said industry expert Denis Low.
He told Bernama that natural rubber (NR) prices and demand will likely move sideways with a slight bias to be higher.
“The Thai Meteorological Department had forecast heavy to very heavy rain in parts of Thailand. As for Malaysia, the weatherman had forecast thunderstorms and heavy rain in several parts of the country.
“The volatility in oil prices and the US dollar may also influence the prices and demand of rubber. Such acute volatility represents uncertainties and may warrant caution,” he said.
For the week just ended, Low said the rubber supply has managed well with supply being curtailed to a certain extent but manageable despite the sporadic heavy rains.
“Rubber demand has built up and both supply and demand is balancing well enough to ensure supply is adequate,” said Low.
Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said the rubber market may ease a little next week due to the firmer ringgit, and softer rubber production and demand from China following its holiday season for the Mid Autumn Festival.
“However, natural rubber and latex prices may remain firm and trade range-bound,” it said.
The association also said market sentiments also weighed on the possibility of a US-Iran truce despite continued attacks on oil facilities.
“The summit between US President Donald Trump and Chinese President Xi Jinping may provide market confidence ahead of upcoming multilateral discussions,” it added.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for SMR 20 increased 62.5 sen to 1,040 sen per kilogramme, while latex in bulk gained 13.5 sen to 730.5 sen per kilogramme.
