KUALA LUMPUR: The Malaysian rubber market is expected to be range bound and prices and demand subdued with a very slight upside bias amid global uncertainties and ringgit volatility against the US dollar.
Denis Low, the immediate past president of the Malaysian Rubber Glove Manufacturers Association (MARGMA), said the rubber market remains sluggish during this monsoon season despite lower capacity yield.
He believes this is largely due to recent fears of COVID-19 in China, where many major industrial cities are in full lockdown.
The use of rubber is always tailored to logistics and passenger transport.
“Whenever there is a serious lack of people movement and logistics, it also means a slowdown in business and productivity, which hampers the use of rubber,” he told Bernama.
For now, he said, due to bad weather, prices and demand are at least holding up, and hopefully replenishment and stockpiling activities will continue.
Another trader said rubber prices will continue to track the performance of regional rubber futures markets, ringgit strength against the US dollar and benchmark crude prices amid weaker economic growth expected in 2023.
“Market participants are expected to monitor upcoming global economic indicators for further clues in addition to developments in the widening COVID-19 curbs in China,” he said.
On a Friday-Thursday basis, Standard Malaysian Rubber (SMR) 20 fell 16 sens to 561 sens per kilogram (kg) from 577 sens per kg, while bulk latex fell 9.0 sens to 462 sens per kg from 471 sens per kg kg lost kg a week earlier.
At 17:00 on Friday, MRB’s closing price for SMR 20 was 559 sens per kg and latex in bulk was 460 sens per kg. -Bernama
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