Rubber prices expected to remain steady next week

MALAYSIAN rubber prices are expected to remain steady next week with a tendency to move slightly higher due to poorer output, said an industry expert.

Malaysian Rubber Glove Manufacturers Association past president Denis Low said the monsoon threat may trigger stocking activities.

Despite the poor yield due to incessant rainfall in the rubber-producing region, he said the market remains range-bound this week with sporadic and insignificant buying.

“The earlier run-up in prices and demand had stabilised the market during a low yield period. 

“It is a very significant signal, that while the world is looking towards economic recovery, the prevailing uncertainties still hold sway,” Denis told Bernama.

On another note, he said oil prices and the US dollar are volatile due to heightened geopolitical risks in the Middle East and prevailing economic uncertainties.

“We need to be cautious about the yo-yo effect on oil prices, as well as the volatility of the greenback, which may impact prices and demand. Such acute volatility can affect businesses while the runaway strength of the US dollar can be detrimental to (Malaysia’s) balance of payment,” he said.

Meanwhile, a dealer said market players are cautiously anticipating further cues from the US Federal Reserve on its interest rate path while keeping an eye on the latest developments in the Middle East conflict, coupled with China’s economic indicators to be released next week.

Week-on-week, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) rose 10 sen, or 1.47 per cent, to 692.00 sen per kilogramme (kg) from 682.00 sen per kg previously.

Latex-in-bulk added 11.5 sen to 542.50 sen per kg.

 At 5 pm, the MRB reference price for physical rubber SMR 20 stood at 688.00 sen per kg, while latex-in-bulk stood at 543.00 sen per kg. — BERNAMA