By K. Naveen Prabu
KUALA LUMPUR, Aug 15 (Bernama) -- The Malaysian rubber market is expected to trade range-bound next week, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA).
The association said higher domestic natural rubber production, coupled with concerns over global demand, is expected to limit any significant upside in prices. However, the possibility of tighter supply due to El Nino conditions later this year could provide some support to the market.
“The Department of Statistics Malaysia's (DOSM) June monthly report indicates that rubber production has increased, although there are concerns that El Nino conditions could tighten supply later this year.
“The report also indicated that rubber gloves remained the primary export item among rubber-based products in June, although market sentiment continued to be weighed down by concerns over global rubber demand,” the association told Bernama.
Meanwhile, industry expert Denis Low said the market is expected to remain firm with a slight downward bias, with demand likely to be driven mainly by restocking needs rather than speculative buying.
“The rubber market experienced unusual volatility last week amid heightened geopolitical tensions, with stronger demand pushing prices higher despite expectations of a relatively steady market.
“For the coming trading week, we believe earlier concerns were largely addressed last week, and unless there is a significant escalation in oil prices, the rubber market should remain steady at around last week’s benchmark levels,” he said.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) remained unchanged at 909 sen per kilogramme, while latex in bulk fell three sen to 688.50 sen per kilogramme.
-- BERNAMA