Kuala lumpur: The Kuala Lumpur rubber market is anticipated to remain within a range-bound trend with a slightly downward inclination in the upcoming week, as supply and demand maintain a general equilibrium amid fluctuating crude oil prices and ongoing geopolitical uncertainties.
According to BERNAMA News Agency, industry expert Denis Low highlighted that the persistent conflict in West Asia continues to disrupt commerce and industry, contributing to an environment of uncertainty. Recently, attacks in the region have led to a rise in crude oil prices by approximately four percent, reaching around US$94.20 per barrel. This increase in oil prices has resulted in escalating prices and costs across the board.
Low emphasized the need for caution regarding the volatility in crude oil prices and the US dollar, which have the potential to influence rubber prices and demand. He noted that such volatility introduces uncertainties that may necessitate caution and possibly even fear within the market.
On the supply front, Low pointed out that while sporadic thunderstorms and heavy rains have impacted certain rubber-producing regions, these conditions have not been severe enough to significantly disrupt rubber supply. In fact, favorable weather conditions in more regions have led to an increase in supply reaching the market. He suggested that monitoring climate change patterns over time would be essential to better manage these conditions.
Low also mentioned that the Thai Meteorological Department has forecast isolated heavy rain across Thailand, with Malaysia expected to experience hazy weather until the following week. In light of these conditions, Low anticipates that the rubber market will continue to follow last week's range-bound trend, with prices, supply, and demand remaining balanced but with a slight tendency to decline.
A comparison of prices from Friday to Friday shows that the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) decreased by 5.0 sen to 958.5 sen per kilogramme, while latex in bulk saw an increase of 2.5 sen to 690.5 sen per kilogramme.