RUBBER MARKET TO REMAIN QUIET WITH DOWNWARD BIAS NEXT WEEK AMID GLOBAL UNCERTAINTIES

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, April 19 (Bernama) -- The Malaysian rubber market is expected to remain quiet next week, with a downward bias amid ongoing global uncertainties, said industry expert Denis Low. 

He noted that the global economy is currently grappling with heightened unpredictability particularly stemming from developments in Washington, which could impact commodity markets across the board, including rubber.

“Obviously, there is now a significant reluctance to stock up as the continuity of business has become increasingly uncertain. 

“It’s also inevitable that exchange rates will fluctuate more sharply amid heightened volatility affecting most trading nations,” he told Bernama. 

Therefore, he anticipates that, in the short term, interest in commodities will remain subdued, with any purchases--rubber included--largely based on locked-in contract and as replenishment only.

Meanwhile, Low said that the Malaysian Meteorological Department is forecasting thunderstorms, heavy rainfall, and strong winds in the northern states. 

At the same time, he noted that the Thai Meteorological Department is also predicting intense thunderstorms, howling winds, hail, and isolated heavy rains, and lightning strikes in the southern part of the country.

Another dealer mentioned that the rubber market is likely to trend downward next week in line with the regional rubber futures markets, as market sentiment reacts negatively to concerns over global economic uncertainties, including a potential trade war and escalating geopolitical tensions.

For the week just ended, the rubber market traded mixed due to a stronger ringgit against the US dollar and uncertain US trade policies.

“Nonetheless, further losses were capped by positive Chinese economic data, weekly gains in oil prices, limited natural rubber supply in major producing countries, and optimism for more Chinese stimulus measures,” the dealer said. 

On a Friday-to-Thursday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 11.5 sen to 751.0 sen per kilogramme (kg), while latex in bulk declined by 5.5 sen to 651.5 sen per kg.

The Kuala Lumpur rubber market was closed on Friday (April 18) for Good Friday. It will resume operations next Monday, April 21.

-- BERNAMA