KUALA LUMPUR : The Malaysian rubber market is expected to remain at the current level next week. Malaysian Rubber Glove Manufacturers Association president Denis Low Jau Foo said economic jitters linked to the US-China trade war, China’s slowing automotive industry and Brexit, could further dent demand, despite tight supply following the current low production wintering season.
Hence, he said, demand may be muted throughout the week.
Low also sees tepid movement in latex bulk prices, especially with the pricing has been 20 per cent higher than the last two weeks, after the world’s top producers of natural rubber said they would curb exports to prop up rubber prices.
However, Thailand recently announced it would delay cuts in rubber exports till May 20 instead of the initially planned date of April 1, due to its general election.
Earlier this month, Indonesia, Malaysia and Thailand, which together formed the Tripartite Rubber Council (ITRC) said they would cut rubber exports by 240,000 tonnes for four months from April under the Agreed Export Tonnage Scheme (AETS).
However, another dealer said the ringgit and bullish oil price performance may lend some support to rubber.
The dealer said during the week, the ringgit, which was mostly weaker against the US dollar had also helped limit any downtrend.
Overall, the market was mostly mixed during the week.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 dropped 17.5 sen to 580.5 sen from 598.0 sen a kg, while latex-in-bulk went down 8.0 sen to 480.0 sen from 488.0 sen a kg.
The 5 pm unofficial closing price of SMR 20 declined 18.0 sen to 579.0 sen from 597.0 sen a kg, while latex-in-bulk was 8.5 sen lower at 479.0 sen a kg from 487.5 sen a kg previously.
