Kuala lumpur: The Malaysian rubber market is expected to move sideways with an upward bias in both demand and price next week, driven by the monsoon season and heavy rainfall in major rubber-producing countries.

According to BERNAMA News Agency, Low noted that Hat Yai, Thailand, has been experiencing flooding for more than a week, while strong winds and continuous heavy rains have impacted rubber estates and processing plants, leading to a halt in rubber production.

Low explained that while the monsoon season and floods are typically expected, the current market situation is surprising. Despite the usual volatility and expectation for higher prices, the market remains stable with minimal increases in price and demand.

He attributed the ongoing market depression to geopolitical tensions involving Japan, China, and Taiwan, as well as uncertainty surrounding the Ukraine-Russia peace deal.

Low further highlighted that the Thai Meteorological Department has issued heavy rain warnings for 35 provinces, with the southern region receiving the most rainfall. Meanwhile, the Malaysian Meteorological Department has warned of continuous rain for the peninsula's east coast and western Sarawak.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 8.5 sen to 724 sen per kilogram, while latex-in-bulk was recorded at 575.5 sen per kilogram.