KUALA LUMPUR: The rubber market is expected to continue its upward momentum this week, supported by firm crude oil prices and potential supply disruptions.
The Malaysian Rubber Glove Manufacturers Association (MARGMA) noted that rubber prices, which reached new highs last week, are likely to continue trending upward.
“Rubber prices have hit new highs this (last) week and this upward trend is likely to continue into next (this) week, driven by firmer crude oil prices and expected supply disruptions following the United States’ (US) blockade of Iranian ports,” MARGMA told Bernama recently.
The association added that encouraging signs from China’s latest economic policies may further support demand.
However, industry expert Denis Low said the rubber market is likely to see some volatility, with a softer bias.
“It is a highly uncertain week ahead and the rubber market appears to be in a short supply position without reasonable causes,” he said.
The market was closed last Friday in conjunction with the Labour Day public holiday and will resume trading today.
On a weekly basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose by 18 sen to 859 sen per kilogramme (kg), while latex-in-bulk decreased by 6.5 sen to 751 sen per kg. – BERNAMA
