Describing the current situation as “extremely uncertain”, Malaysian Rubber Glove Manufacturers Association (MARGMA) president Denis Low said in such a state of flux, it was only natural that commodity demand and prices would be severely affected.
“Hence, it is expected that the local rubber market would remain weak in the coming week, and it is likely to trend much lower,” he said.
Over the past week, Malaysia’s rubber market was traded mixed to low, weighed by the plummeting crude oil prices and the escalating Covid-19 fears following the WHO’s pandemic declaration.
Last Monday, the Malaysian Rubber Board’s (MRB) reference physical price for tyre-grade SMR 20 sank to 515.50 sen per kg, the lowest level since December 2018 after global crude oil prices plunged by as low as 30% due to the price war triggered by Saudi Arabia against Russia.
Low said rubber producers ought to gear up and brace themselves for the worst.
“However, the saving grace is that latex-in-bulk will see some demand due to the surge in demand for medical rubber gloves amidst the rampaging Covid-19 outbreak across the world,” he added.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference physical price for tyre-grade SMR 20 trimmed 10.0 sen to 527.5 sen a kg, while latex-in-bulk shrank 11.5 sen to 437.0 sen a kg.
At 5pm, the MRB’s reference physical price for SMR 20 perked 2.5 sen to 539.0 sen a kg, while latex-in-bulk lost 12.5 sen to 435.5 a kg from the previous week. – March 14, 2020, Bernama
