KUALA LUMPUR: The Malaysian rubber market is likely to extend its range-bound mode to next week, with prices remaining at the current level, as investors have no clues as to the direction of the International Tripartite Rubber Council (ITRC).
Malaysian Glove Manufacturers Association president Denis Low Jau Foo said currently, the ITRC did not really have a serious plan that could be implemented immediately, to provide a positive catalyst to the market.
“Any practical stimulus strategies to be deployed by the ITRC will certainly be an important catalyst to push rubber prices higher, but, any plan will take some time to be implemented,” he told Bernama.
ITRC members — Malaysia, Thailand and Indonesia — will be holding a two-day meeting in Bangkok, beginning tomorrow, to discuss issues pertaining to the excess supply of rubber, as well as measures to baoost the commodity’s demand and prices.
Asked if Malaysia was having excess stocks for both the SMR 20 and latex in bulk (LIB), Low said the inventory for dry rubber might be at about 60,000 to 80,000 tonnes thus far, but not for LIB.
“Malaysia only produces about 900,000 tonnes (yearly), so, the stockpile is high, but not alarming,” he added.
For the week just ended, rubber prices were traded range-bound, mainly influenced by China’s weaker economic data for December 2018, regional rubber futures markets, the ringgit’s performance and crude oil prices.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 fell eight sen to 549.0 sen a kg, while latex-in-bulk eased 5.5 sen to 394.0 sen a kg.
The 5 pm unofficial closing price for SMR 20 declined 10.5 sen to 543.5 sen a kg, while latex-in-bulk was 7.5 sen lower at 391.5 sen a kg. – Bernama
