KUALA LUMPUR: The Malaysian rubber market is expected to remain steady next week due to tight supply of the commodity in major producing countries following the current rainy season.
“We will see prices going up a bit next week, extending last week’s momentum,” Malaysian Rubber Glove Manufacturers Association president Denis Low Jau Foo said.
Low said the price for SMR 20 surpassed the RM6.00 level per kg on Thursday — the highest since July 2019.
He also projected that the steady price movement would likely continue until February 2020, with buying demand mainly coming from China.
Meanwhile, a dealer said the rubber market’s prospects in the near-term are favourable due to supply disruptions following the current wet weather streak and an outbreak of a fungal disease (Pestalotropsm) in major rubber producing countries.
“The sentiment is further boosted by renewed optimism about the United States-China trade deal,” he added.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference physical price for tyre-grade SMR 20 jumped 31 sen to 607 sen a kg and latex-in-bulk added 9.5 sen to 454.5 sen a kg.
The 5pm unofficial closing price for tyre-grade SMR 20 appreciated 32.5 sen at 613.5 sen a kg and latex-in-bulk improved 11.5 sen to 458.5 sen a kg compared with the previous week. – Bernama