Local Rubber Market Will Be Defined By Stagnant, Sideway Moving Prices

The local rubber market is expected to have another week with little change, with demand and prices remaining stagnant and showing a tendency to move sideways.

The Malaysian Rubber Glove Manufacturers Association’s past president, Denis Low, said there will be the usual stock replenishing activities, but interest in purchasing additional rubber for stocking purposes will be subdued for now.

“There is hope that as trade promotional activities continue worldwide, we can anticipate increased rubber demand and better prices in the months ahead.

“However, for the time being, it will primarily involve replenishment activities,” he said.

He also said it was important for the market to be mindful of the potential risks associated with exchange rate volatility, particularly concerning trade imbalances.

“While a weaker currency benefits exporters, it can have negative consequences for importers and their businesses,” he added.

Throughout the week, the local rubber market experienced mixed results primarily due to fluctuations in regional rubber futures market prices, concerns about China’s economic growth, and the possibility of interest rate hikes in the United States.

The Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 10 sen to 594.5 sen per kilogram from the previous week’s 604.5 sen per kilogram, while latex-in-bulk increased by two sen to 493 sen per kilogram compared to 491 sen per kilogram the previous week.

As of 5 pm on Friday, the MRB’s reference price for physical rubber SMR 20 was 596.5 sen per kilogram, while latex-in-bulk stood at 493 sen per kilogram.