Local rubber market set to remain quiet this week

KUALA LUMPUR: The local rubber market will likely see quiet trading this week due to a lack of fresh leads post-Aidilfitri celebration and amid the Songkran festival in Thailand, said industry experts.

Industry expert Denis Low said buying activities will be confined to steady stock replenishment amid a cautious week ahead. He said the current geopolitical situation pushes certain commodity prices beyond expectations while curtailing some.

“The volatile oil and gas prices are serious issues that can affect businesses while the runaway strength of the US dollar can be detrimental to the balance of payment,” he told Bernama.

Another dealer said the commodity will continue to track the performance of regional rubber futures markets, the strength of the ringgit against the US dollar and benchmark crude oil prices amid a natural rubber shortage and the expectation for interest rates to stay higher longer.

“Market operators will continue to monitor global economic data coupled with geopolitical tensions in the Middle East,” she added.

The local rubber market rose on a weekly basis due to concerns over global natural rubber shortage owing to adverse weather conditions in major producing countries amid a mixed performance in regional rubber futures markets.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s (MRB) reference price for SMR 20 rose by 12 sen, or 1.58% to 773.50 sen per kg last week from 761.50 sen in the previous week, while latexin-bulk fell 2.0 sen to 744.0 sen per kg from 746.0 sen before.

At 5pm on Friday, the MRB reference price for physical SMR 20 stood at 770 sen per kg while latex-in-bulk was 744 sen per kg.

The Kuala Lumpur rubber market was closed on Wednesday and Thursday, in conjunction with the Aidilfitri holidays.