The rubber market could move higher next week on supply concerns
The Malaysian rubber market is expected to trend higher next week due to supply shortage concerns and adverse weather conditions ahead of the monsoon, which could affect rubber production.
Denis Low, former president of the Malaysian Rubber Glove Manufacturers Association (Margma), said continuous rainfall in rubber producing areas had pushed up rubber prices and demand.
"We expect the rains to continue, which will hinder the glue picking activities. We believe there will be more inventory activity leading to higher demand and prices.
"At the same time, the fall in the ringgit against the US dollar is also supporting rubber prices as it makes rubber cheaper for foreign buyers," he told Bernama.
In the week just ended, the Malaysian rubber market trended higher on the back of general weakness
The ringgit rose against the US dollar, regional rubber futures and higher crude oil prices, as well as positive sentiment on the US jobs data.
Still, the prospect of a sharp interest rate hike by the US Federal Reserve and a contraction in factory activity in Asia, particularly in China due to newly imposed Covid-19 restrictions, capped further gains, a dealer said.
Looking ahead, he said rubber prices would continue to track the movements of the regional rubber futures market, the ringgit against the US dollar and benchmark crude oil prices amid the prospect of further substantial rate hikes by the US Federal Reserve.
Market operators will also continue to monitor the further development of Covid-19 restrictions in China, he added.
Malaysian standard rubber (SMR) rose 20.0 sen per kg from 566 sen to 586.0 sen from Friday to Friday, while bulk latex rose 19.0 sen per kg to 481.5 sen from 462.5 sen a week ago.
At 5pm, MRB SMR 20 was trading at 586.5 sen per kg while bulk latex was trading at 481.5 sen.
Contact Us Add: Room 101, No.2 Jixiang West Road, Tong 'an District, Xiamen City, Fujian Province Tel：18950164815 Emaill：[email protected] | 
Follow Us |