Kuala lumpur: The Malaysian rubber market is expected to trade sideways next week due to slowing demand for commodities including rubber, said industry expert Denis Low. He said demand and prices are likely to soften in the coming week.
According to BERNAMA News Agency, Low noted, “We see the market as soft and expect demand to come down quite significantly. Prices may move lower but not substantially, as weather conditions will act as a counterweight.” He highlighted the forecasts from the Thai Meteorological Department, which predict scattered rain, strong winds, and rough seas due to shifting monsoon patterns and a nearby tropical storm. Additionally, Malaysia’s Meteorological Department has issued thunderstorm warnings for several states.
Low also mentioned that crude oil prices and the volatile US dollar could affect demand and pricing. “Such acute volatility represents uncertainties and may warrant both caution and fear. Thus, we may see a more measured approach to trading this commodity,” he added.
Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) commented on the potential impact of slowing US economic growth following the government shutdown. “The International Monetary Fund also sees mixed views on inflation amid tariff impacts. The rubber market may ease over supply concerns due to adverse weather conditions in top-producing nations,” MARGMA stated.
On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 12 sen to 731.50 sen per kilogram, while latex-in-bulk also slipped 12 sen to 570.50 sen per kilogram.