THE Malaysian rubber market is projected to trade higher next week due stronger demand from China, ahead of its year-end high demand for automobiles.
Malaysian Rubber Glove Manufacturers Association’s former president Denis Low said the Chinese economy is moving towards pre-COVID-19 momentum as more of its citizens gets vaccinated.
“With the economic recovery programme gaining traction in many countries, rubber consumption will surely rise. The demand and prices are expected to be steady despite the Delta variant threat,” he told Bernama.
He noted that there were good buying activities for bulk latex as the medical gloves industry restarted after two weeks’ shutdown due to the enhanced movement control order (EMCO).
“We will also see activities in both wet and dry rubber segments as industries using both types of rubber are getting back to full swing in the days and months ahead.
“It is envisaged that the Government may consider allowing the glove manufacturers to operate at 100% instead of at 60% currently,” he added.
Meanwhile, another dealer anticipates the market to fluctuate within a narrow range as global markets remain cautious over the rapidly spreading of the COVID-19 Delta strain in major economies, which continue to cloud the global economic outlook.
He said prices are also expected to track the performance of the ringgit against the US dollar, regional rubber futures markets and benchmark in crude oil prices.
For the week just ended, the local rubber market had closed mostly lower, influenced by mixed performance in the regional rubber futures market and concerns over COVID-19 spread.
On a weekly basis, the Malaysian Rubber Board’s (MRB) reference physical price for SMR 20 improved 3.5 sen to 716 sen per kilogramme (kg), while latex-in-bulk strengthened 17 sen to 516.5 sen per kg.
At 5pm yesterday, the MRB’s closing price for SMR 20 stood at 724.5 sen per kg, while latex-in-bulk was at 520.5 sen per kg. – Aug 7, 2021
