Kuala Lumpur: The Malaysian rubber market is expected to trade slightly lower next week amid sluggish demand. Production is anticipated to decline due to the ongoing wintering of rubber trees, stated industry expert Denis Low.

According to BERNAMA News Agency, Low highlighted that the Thai Meteorological Department had issued a weather warning for a summer storm. The storm is expected to bring heavy rain, strong winds, hail, and lightning, affecting 40 provinces.

“Another major source of volatility in the market is the fluctuating exchange rate. We are seeing significant swings in the United States (US) dollar against other currencies worldwide, and this is not conducive to the marketplace,” Low explained to Bernama.

Echoing Low’s sentiment, the Malaysian Rubber Glove Manufacturers Association mentioned that the natural rubber supply will remain tight due to the wintering season and rainy weather. They also noted other factors impacting the market, including trade wars, US tariff policies, and geopolitical tensions, particularly US-China trade relations.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) fell by 15.0 sen to 899.50 sen per kilogramme (kg), while latex in bulk declined by 4.0 sen to 708.00 sen per kg.