Kuala lumpur: The Malaysian rubber market is expected to trade lower next week as an increase in supply is expected to weigh on prices.

According to BERNAMA News Agency, the Malaysian Rubber Glove Manufacturers Association (MARGMA) stated that Southeast Asia, which accounts for most of the world's natural rubber production, is currently in its main tapping season. During this period, more favourable weather conditions allow farmers to harvest more rubber, resulting in a greater supply entering the market. MARGMA explained that when supply increases, prices tend to soften as more rubber becomes available to buyers.

The association also highlighted that an unexpected contraction in China's manufacturing activity in July could impact rubber demand. As the world's largest consumer of natural rubber, China's reduced manufacturing activity could lead to weaker rubber demand, reducing factory output and raw material consumption, and thereby putting downward pressure on rubber prices.

Meanwhile, industry expert Denis Low noted that while prices are likely to edge lower next week, supply and demand are expected to remain broadly steady. He mentioned that the rubber scene is consistently resilient, with supply and demand following their usual pattern of steadiness during the summer months.

On a Friday-to-Friday basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) remained unchanged at 892.0 sen per kilogramme, while latex in bulk fell by 22.5 sen to 695.5 sen per kilogramme.