Kuala lumpur: The rubber market is anticipated to maintain a sluggish trajectory in the coming week, with prices showing a tendency to move sideways with a downward bias. This trend is primarily attributed to reduced demand from China as the country approaches the Chinese New Year (CNY) holiday period.

According to BERNAMA News Agency, the current market conditions persist despite a decline in rubber yield, which is impacted by the wintering season of rubber trees. Industry expert Denis Low noted that the wintering of rubber trees is ongoing and may conclude by mid-March.

Denis Low highlighted that the hot weather is resulting in an unusually low yield, which is atypical for this season. He emphasized the importance of acknowledging climate change as an unpredictable factor that can lead to shortages and potentially drive up prices. He also mentioned that demand for rubber is expected to remain subdued as China prepares for an extended break for CNY starting next week. Additionally, market volatility and uncertainties related to the Middle East situation are expected to exert further pressure on the market.

Low advised traders to navigate and manage the uncertainties posed by weather conditions and geopolitical tensions in the weeks ahead. He suggested that stockists and users maintain some inventory to balance supply and demand fluctuations temporarily.

From a Friday-to-Friday perspective, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by four sen to 760.5 sen per kilogramme, while latex in bulk experienced a slight increase of one sen to 578.50 sen per kilogramme.