Kuala Lumpur:The rubber market in Kuala Lumpur is anticipated to experience continued volatility in the coming week due to adverse weather conditions and ongoing geopolitical tensions.
According to BERNAMA News Agency, industry expert Denis Low noted that natural rubber prices and demand are likely to fluctuate, with a tendency towards a slight increase. The Thai Meteorological Department has predicted heavy to very heavy rainfall in Thailand, while Malaysia is expected to experience thunderstorms and heavy rain in various regions.
Low highlighted that fluctuations in oil prices and the US dollar could further impact rubber prices and demand, creating uncertainties that require caution. Despite sporadic heavy rainfall, the rubber supply has been managed adequately, with supply and demand balancing to ensure sufficient availability.
The Malaysian Rubber Glove Manufacturers Association (MARGMA) mentioned that the rubber market might ease slightly next week, influenced by a stronger ringgit and reduced rubber production and demand from China following the Mid Autumn Festival holiday season. However, natural rubber and latex prices are expected to remain stable within a certain range.
Additionally, market sentiments are affected by the potential for a US-Iran truce, despite ongoing attacks on oil facilities. The upcoming summit between US President Donald Trump and Chinese President Xi Jinping might boost market confidence ahead of multilateral discussions.
In the past week, the Malaysian Rubber Board's reference price for SMR 20 rose by 62.5 sen to 1,040 sen per kilogram, while bulk latex increased by 13.5 sen to 730.5 sen per kilogram.