Rubber market likely to trade range-bound with upward bias next week

KUALA LUMPUR: The Malaysian rubber market is expected to trade range-bound with an upward bias next week on anticipation of improving demand.

Denis Low, the immediate past president of the Malaysian Rubber Glove Manufacturers Association (MARGMA), said the rubber market is in a speculative mood amid bad weather conditions leading up to the seasonal monsoon which may severely affect output.

“While there are plenty of uncertainties in the world, coupled with the risk of global recession, rubber is still a required item in many products,“ he told Bernama.

Hence, he said, a stronger demand for rubber products is expected to help push up prices to a certain extent.

“For next week, we are putting our bets on more stockpiling activities as this is still an important commodity. Any serious shortages may be detrimental to many industries directly and indirectly,“ said Low.

Meanwhile, another dealer said market players are expected to remain on the sidelines ahead of global economic data and the United States Federal Reserve meeting next week.

“Prices will continue to track the performance of regional rubber futures markets, the currencies and benchmark crude oil amid global recession risks,“ he said.

On a Friday-to-Friday basis, Standard Malaysian Rubber (SMR) 20 fell 23.5 sen to 566 sen a kilogramme (kg) from 589.5 sen per kg, while latex-in-bulk added 0.5 sen to 462.5 per kg from 462 sen per kg a week earlier.

At 5 pm, MRB’s closing price for SMR 20 stood at 552 sen a kg while latex-in-bulk was at 460.5 sen a kg. - Bernama

Source: The Sun Daily

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