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Rubber Market Expected Trend Up Next Week On Supply Constraints

Kuala lumpur: The rubber market is expected to trend up next week with demand possibly outstripping supply amid the wintering season of rubber trees, industry expert Denis Low said. Low noted that rubber productivity will take a hit, resulting in lower output that is expected to continue until the end of March.

According to BERNAMA News Agency, Low mentioned that incessant rainfall in some rubber-producing regions will make tapping activities difficult, further lowering productivity. "Climate change is upon us as seasonal weather conditions are unpredictable," he stated.

Low also highlighted that the Thai Meteorological Department (TMD) warned about thunderstorms over Bangkok and surrounding provinces with heavy rainfall, with similar weather conditions expected in Malaysia. "The Malaysian weatherman forecast thunderstorms, heavy rain and strong winds to hit Kuala Lumpur, Putrajaya and nine states," he added.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) indicated that the market is likely to pick up next week following the Lunar New Year demand. The market may remain mixed, tracking regional rubber futures and the ringgit's strength. Uncertainty over US tariffs, coupled with a stronger ringgit, is signalling a mixed market that is further influenced by regional futures and crude oil prices.

"Rubber prices may inch upward next week due to expected supply constraints from the wintering season, and volatility in regional rubber futures and crude oil markets," MARGMA added. On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) jumped 29.5 sen to 792 sen per kilogramme (kg) while latex in bulk surged 28.5 sen to 614 sen per kg.

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