THE Malaysian rubber market is expected to trade range-bound next week, with an upward bias for both volume and prices compared with last week.
Malaysian Rubber Glove Manufacturers Association (MARGMA) president Denis Low said the main catalyst for the local market is still China, and as the republic comes out of the lockdown, more industries will reopen, and hence more demand for rubber.
“Movement of people means automobiles are moving about and this means more consumption of rubber. Tyre is the product that uses large quantities of rubber.
“On the Malaysian front, the rubber gloves industry remains strong, consuming about 75% to 77% of bulk latex product locally,” he told Bernama.
Low said rubber demand was expected to increase due to a prolonged wintering season in Thailand which affects latex yield and causes a supply shortage.
For the week just ended, the rubber market saw mixed trading driven by the performance of regional rubber futures markets and the ringgit movement.
On a Friday-to-Thursday basis, the Malaysian Rubber Board’s (MRB) reference price for tyre-grade SMR 20 rose three sen to 486.0 sen per kg, while latex-in-bulk improved two sen to 419.0 sen per kg.
At 5pm, the MRB’s reference price for tyre-grade SMR 20 added two sen to 483.0 sen per kg, while latex-in-bulk rose 4.5 sen to 418.5 sen per kg. – April 18, 2020, Bernama:
