The Kuala Lumpur rubber market is expected to remain firm with an upward bias next week, supported by tightening supply as adverse weather continues to disrupt production in major rubber-producing areas.
Industry expert Denis Low said strong winds, thunderstorms and heavy rain had persisted in several producing areas, followed by unusually hot weather that further reduced productivity.
“These conditions have lowered rubber yields and led to supply shortages, particularly for dry rubber,” he told Bernama.
As supply tightened, dry rubber prices edged higher, while smallholders opted to delay bulk latex sales. China was the main buyer last week, Low said.
The supply outlook could remain constrained, with Thailand’s Meteorological Department forecasting heavy rain across 60 per cent of Bangkok and isolated heavy rain in several parts of the country’s northern, central, eastern, southern and western regions. Malaysia, meanwhile, is expected to experience hazy conditions until National Day on Aug 31.
Against this backdrop, the Malaysian Rubber Glove Manufacturers Association (MARGMA) also expects rubber prices to continue rising next week, citing persistent El Niño conditions that are affecting supply.
However, market activity could be tempered by the National Day holiday in Malaysia, with rubber glove manufacturers expected to see slower trading next week. MARGMA said mixed prospects for US inflation could also provide some support to overall rubber market sentiment.
For the week ended Friday, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber (SMR) 20 rose 16.5 sen to 963.5 sen per kilogram. In comparison, bulk latex fell 8.5 sen to 688 sen per kilogram.
The rubber market will be closed on Monday, Aug 31, for National Day and will resume trading on Tuesday.
