RUBBER MARKET TO TRADE SIDEWAYS NEXT WEEK, TRACKING CRUDE OIL, FUTURES PERFORMANCES

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, April 12 (Bernama) -- The Malaysian rubber market is expected to trade sideways in the coming week with prices likely to track regional rubber futures and benchmark crude oil prices amid ongoing United States (US)-China trade tensions, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).

The association noted that it has been a tumultuous week marked by a series of tariff announcements, which have weighed on the regional rubber market and crude oil prices, coupled with the ringgit strengthening against the US dollar.

Nonetheless, the market may see some positive momentum in the coming week, supported by the anticipated visit of Chinese President Xi Jinping to Southeast Asian countries, including Malaysia.

“Natural rubber (NR) supply remains tight in major producing countries due to weather conditions and crop damage in Thailand.

“While rubber prices may rebound upwards due to these factors, escalating concerns of a global economic downturn prevails,” the association told Bernama.

Echoing MARGMA, a dealer told Bernama the rubber market is expected to continue tracking regional rubber futures performance, the ringgit’s strength against the US dollar, benchmark crude oil prices, and US tariff developments, amid a limited NR supply in major producing countries.

“Market players are also monitoring the US economic indicators, especially those that provide cues on US monetary policy, Chinese economic stimulus amid escalating concerns of a global economic slowdown,” the dealer said.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 74 sen to 762.5 sen per kilogramme (kg), while latex in bulk declined by 11 sen to 657 sen per kg.

-- BERNAMA