Kuala lumpur: The Malaysian rubber market is expected to trade within a narrow range next week, as indicated by the Malaysian Rubber Glove Manufacturers Association (MARGMA).

According to BERNAMA News Agency, the association noted that an increase in domestic natural rubber production, along with ongoing concerns over global demand, is likely to prevent any significant rise in prices. However, the potential for supply constraints, influenced by El Nino conditions later in the year, might offer some market support.

The Department of Statistics Malaysia's (DOSM) June monthly report revealed that while rubber production has seen an uptick, there are apprehensions about possible supply tightening due to El Nino conditions. Furthermore, the report highlighted that rubber gloves were the leading export item among rubber-based products in June, though market sentiment remains affected by worries about global rubber demand.

Denis Low, an industry expert, mentioned that the market is expected to stay firm with a slight inclination towards a downward trend. He attributed the demand primarily to restocking needs rather than speculative buying. Despite heightened geopolitical tensions causing unusual volatility in the market last week, stronger demand pushed prices higher, defying expectations of a steady market.

For the upcoming trading week, Low suggested that previous concerns had largely been addressed, and unless there is a major increase in oil prices, the rubber market should remain stable, maintaining levels similar to last week's benchmarks.

On a Friday-to-Friday comparison, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) remained steady at 909 sen per kilogramme, whereas latex in bulk experienced a slight decrease of three sen, settling at 688.50 sen per kilogramme.