RUBBER MARKET MAY REBOUND ON CHINESE STIMULUS PLAN

By Abdul Hamid A Rahman

KUALA LUMPUR, May 3 (Bernama) -- The Malaysian rubber market is expected to rebound slightly next week supported by a positive outlook amid potential Chinese stimulus measures, the Malaysian Rubber Glove Manufacturers Association (Margma) said.

The Association of Natural Rubber Producing Countries (ANRPC) projected this positive outlook, estimating that natural rubber (NR) consumption will rise by 1.5 per cent in 2025 to about 15.6 million tonnes.

“Continued limited NR supply in major rubber-producing countries will also have an effective impact on prices,” a Margma spokesperson told Bernama.

However, she noted that nothing has materialised from the United States-China trade talks and this will continue to weigh on the market and the global economy.

“Prices will continue to track the performance of regional rubber futures markets, as well as the ringgit’s strength against the US dollar and benchmark crude oil prices,” she added.

Meanwhile, industry expert Denis Low said the Trump administration has brought about many uncertainties and volatility in the rubber market.

“We are entering an increasingly dynamic and extremely complex global economic environment. It is pertinent for businesses across the world to continue adapting as best they can to manage the continuous challenges posed by (US President Donald) Trump’s policies,” he added.

On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) dipped 14.5 sen to 738.0 sen per kilogramme (kg) while latex in bulk fell 16.5 sen to 609.0 sen per kg.

-- BERNAMA