The Malaysian rubber market is expected to remain steady next week with an upward bias.
Malaysian Rubber Glove Manufacturers Association (Margma) past president Denis Low said incessant rainfall in rubber-producing regions would help push up the rubber prices and demand.
He said the low-pressure area over the central part of the South China Sea has intensified into a tropical depression.
With heavy rain from the tropical depression hitting northern and north-central Vietnam, this would cause flooding and spark warnings of landslides, he said.
Low further noted that this would later move across Thailand along the storm trough. The Thai Meteorological Department has issued a storm warning, with torrential rain predicted across 41 provinces.
“There are warnings of floods and this may affect rubber production. Oil prices remain strong and may be near US$100 a barrel.
“Anyhow, a range of factors could prevent a sustained rally above that level. We need to be cautious as the volatile US dollar may have an impact on demand and prices as well,” he told Bernama.
On a weekly basis, the Malaysian Rubber Board’s (MRB) reference price for Standard Malaysian Rubber 20 (SMR 20) eased 0.45 per cent lower, or 3.0 sen, to 654.50 sen per kilogramme (kg) from last week’s 657.5 sen per kg.
Latex-in-bulk added 2.58 per cent, or 12.5 sen, to 497.50 sen per kg from 485 sen per kg previously.
At 5 pm yesterday, the MRB reference price for physical rubber SMR 20 stood at 652.00 sen per kg while latex-in-bulk was 498.00 sen per kg.
Read more at The Malaysian Reserve