Kuala lumpur: The Malaysian rubber market is expected to see some volatility next week with a slight downtrend amid the shortage of crude oil flowing through the Strait of Hormuz, said an industry expert Denis Low. He noted that the uncertainty surrounding a potential peace deal between the United States and Iran has contributed to widespread shortages, leading to escalating prices.

According to BERNAMA News Agency, Low explained that when uncertainty and shortages prevail, prices tend to become volatile due to the dynamics of supply constraints and potential profiteering. While the reality of shortages is understandable, Low suggested that profiteering might not be sustainable in the long run.

Low highlighted that the current geopolitical situation is driving certain commodity prices beyond expectations, while also curtailing others. This complex interplay of geopolitical factors is influencing the market dynamics in unpredictable ways.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 37.5 sen to 841 sen per kilogramme, while the price of latex-in-bulk decreased by 10.5 sen to 757.5 sen per kilogramme.