Kuala Lumpur: The rubber market is likely to move up slightly next week, with steady demand anticipated ahead of the Chinese New Year (CNY) celebration, said industry expert Denis Low. He also noted that the Thai Meteorological Department has issued a warning about the strengthening northeast monsoon over the Gulf of Thailand and South of the Andaman Sea, which is expected to bring heavy rainfall to the lower South of Thailand over the weekend.

According to BERNAMA News Agency, Denis Low highlighted the potential impact of this weather development, stating, “This may cause flash floods and incessant downpours. This incessant rainfall would attribute to an inadequate supply situation and may push up prices and demand.” He also pointed out that the volatile oil prices and fluctuating US dollar are factors likely to influence prices and demand, leading to potential uncertainties and a more cautious trading approach.

The Malaysian Rubber Glove Manufacturers Association (Margma) expressed concerns over potential market volatility next week due to escalating trade tensions between the United States and China, which could result in a new trade war. The World Bank has also issued a warning that US tariffs might diminish the global growth outlook, further impacting the market.

Prices are expected to track the performance of regional rubber futures markets, with the strength of the ringgit against the US dollar and benchmark crude oil prices also playing crucial roles. Additionally, ongoing uncertain weather conditions in major rubber-producing countries will continue to influence rubber supply concerns, according to Margma.

On a Friday-to-Friday basis, the Kuala Lumpur rubber market showed mixed trading patterns. The Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 18.0 sen to 894.0 sen per kilogramme (kg), while latex in bulk saw a decrease of 6.0 sen to 670.50 sen per kg.