Kuala lumpur: The Malaysian rubber market is expected to trade sideways with a slight downward bias next week as easing geopolitical tensions and mixed supply conditions shape sentiment, said industry expert Denis Low. He explained that recent developments, particularly a memorandum of understanding (MoU) signed between the United States and Iran, have contributed to improving global risk sentiment and restoring stability to shipping routes.

According to BERNAMA News Agency, Low highlighted that the cessation of conflict in the Gulf region has facilitated the free flow of shipping and cautiously resumed commerce. The normalization of oil flow is anticipated to stabilize prices, potentially leading to lower overall costs in the market.

Despite this, Low pointed out that supply-side challenges remain due to erratic weather in key producing areas, causing sporadic heavy rainfall and a slightly tight supply situation. He suggested this might be a temporary issue, with supply and demand eventually balancing as demand slows down.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) noted a mixed outlook for rubber in the upcoming week. While the Chinese economy appears stable, the US economy is showing signs of weakness, as evidenced by the Federal Reserve's decision to keep interest rates unchanged. MARGMA also mentioned the potential for increased demand for rubber gloves from the Middle East, which could drive demand for latex.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 17.5 sen to 946 sen per kilogram, while latex-in-bulk rose by 13.5 sen to 794.5 sen per kilogram.