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Rubber Market Anticipates Rebound Due to Chinese Stimulus Plan

Kuala Lumpur: The Malaysian rubber market is poised for a potential rebound in the coming week, spurred by a favorable outlook linked to anticipated Chinese stimulus measures, according to the Malaysian Rubber Glove Manufacturers Association (Margma).

According to BERNAMA News Agency, the Association of Natural Rubber Producing Countries (ANRPC) has projected a rise in natural rubber (NR) consumption by 1.5 percent in 2025, reaching approximately 15.6 million tonnes. This optimistic forecast is fueled by the expectation of continued limited NR supply in major rubber-producing countries, which is likely to impact prices positively.

Despite the optimistic outlook, a Margma spokesperson highlighted that the ongoing United States-China trade talks have yet to yield any tangible results, which continues to exert pressure on the market and the global economy. Prices are anticipated to be influenced by the performance of regional rubber futures markets, the ringgit’s exchange rate against the US dollar, and benchmark crude oil prices.

Industry expert Denis Low remarked on the volatility introduced by the Trump administration, emphasizing the need for businesses globally to adapt to the dynamic and complex economic environment. He pointed out that the policies of US President Donald Trump have introduced uncertainties that challenge the rubber market.

In terms of pricing, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) saw a decrease of 14.5 sen, settling at 738.0 sen per kilogram, while latex in bulk fell by 16.5 sen to 609.0 sen per kilogram on a week-to-week basis.

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