On the back of improved demand, the Malaysian rubber market is expected to trade range-bound with an upward bias this week.
According to Denis Low, immediate past president of the Malaysian Rubber Glove Manufacturers Association, the rubber market is in a speculative mood due to bad weather conditions preceding the seasonal monsoon, which may severely affect output.
“While there are many uncertainties in the world, including the risk of a global recession, rubber is still a necessary component in many products,” he told Bernama.
As a result, he believes that increased demand for rubber products will help drive up prices to some extent.
“We are betting on more stockpiling activities this week because this is still an important commodity.” Any severe shortages could have a negative impact on many industries, both directly and indirectly,” said Low.
Meanwhile, another dealer predicted that market participants would remain cautious ahead of global economic data and the US Federal Reserve meeting this week.
“Prices will continue to track the performance of regional rubber futures markets, currencies, and benchmark crude oil in the face of global recession risks,” he predicted.
Standard Malaysian Rubber 20 fell 23.5 sen to 566 sen per kg from 589.5 sen per kg, while latex-in-bulk rose 0.5 sen to 462.5 sen per kg from 462 sen per kg a week earlier.
Info source – The Star