Kuala lumpur: The rubber market is expected to trend higher next week, supported by stronger demand for the commodity amid supply disruptions in the global synthetic rubber segment, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA).

According to BERNAMA News Agency, MARGMA reported that the market is currently facing a severe shortage of nitrile butadiene rubber (NBR) latex following the ongoing blockade of the Strait of Hormuz. This blockade has disrupted global shipping routes and pushed Brent crude oil prices above US$100 per barrel. As NBR is derived from petroleum and serves as the primary raw material for nitrile gloves, the crisis has directly affected both its availability and cost. It has also impacted chemicals used in glove production and plastic packaging materials.

The association indicated that the shortage might boost demand for natural rubber, signalling an upward trajectory for next week. Prices are likely to follow regional rubber futures and remain supported by tight supply amid the ongoing West Asia conflict.

However, industry expert Denis Low predicts that the market may be soft next week, with prices and demand moving sideways, albeit with a slight upward bias. Low noted that shortages of naphtha and butadiene are affecting nitrile latex production, prompting many glove users to switch to natural rubber latex gloves. This shift has slightly increased bulk latex demand, but the market has become sluggish and cautious due to the war, affecting commodities like rubber.

On a weekly basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased 44.5 sen to 803 sen per kilogramme (kg), while latex in bulk surged 12.5 sen to 689.50 sen per kg.