Kuala Lumpur: The Malaysian rubber market is expected to trade sideways, with a slight tendency to decline next week, as various industries remain cautious about Donald Trump’s tariff policies, said industry expert Denis Low. He emphasised that, given the prevailing uncertain mood, commodities are likely to suffer significantly.

According to BERNAMA News Agency, Low highlighted that the uncertainty surrounding the market is causing traders and industries to be hesitant in stocking up on market price-sensitive commodities, including rubber. He noted that the wintering of rubber trees is ongoing, and any decrease in demand is being balanced by a reduction in production, thus equalising each other.

Conversely, the Malaysian Rubber Glove Manufacturers Association (MARGMA) stated that the rubber market might witness some positive trends next week. This optimism is attributed to the Chinese stimulus measures and anticipated gains in oil prices. However, MARGMA also warned that the ongoing war in the Middle East might weigh down trade concerns and the global market outlook.

MARGMA further mentioned that the upcoming United States tariff decisions expected on April 2 could impact prices, as markets grow increasingly uncertain about inflation and economic growth. Prices will likely track the performance of regional rubber futures markets, the strength of the ringgit against the US dollar, and benchmark crude oil prices amid concerns over natural rubber supply during the wintering season and rainy weather.

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 880 sen per kilogramme (kg), while latex in bulk declined by 4.5 sen to 688.5 sen per kg.