Kuala lumpur: The rubber market is expected to be quiet with a tendency to move sideways and lower next week, said industry expert Denis Low. Low highlighted ongoing geopolitical tensions as a significant factor affecting market sentiment, with the uncertainty surrounding the ceasefire possibly prolonging the conflict and impacting global demand.

According to BERNAMA News Agency, Low also mentioned that while supply conditions are mixed, some rubber-producing regions are experiencing severe wintering, which is expected to persist until mid- to end-May. However, certain areas have begun to see improved latex yields. "Generally, judging by the price movement of both wet and dry rubber, it can be seen that demand for dry rubber is taking its own pace and not much volatility is expected," he added.

Low explained that demand for wet rubber latex has strengthened, driven by glove manufacturers switching from synthetic to natural rubber due to tighter supply of feedstock such as naphtha and butadiene. Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) indicated that the rubber market might trade upward next week, supported by stronger demand for natural rubber latex. "The current shortage of nitrile butadiene rubber (NBR) is driving demand for natural rubber latex as a viable alternative," it said.

However, MARGMA noted that rubber prices will continue to track regional futures markets and the ringgit's performance, while geopolitical tensions in West Asia remain a key risk. "The conflict has already significantly impacted the glove industry supply chain, with raw material availability, rising fuel charges as well as higher shipping freight and insurance costs," it added.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 fell 19.5 sen to 803.5 sen per kilogramme (kg), while latex in bulk increased 8.5 sen to 768 sen per kg.