KUALA LUMPUR – The Malaysian rubber market is expected to trade slightly higher next week after Thailand, the world’s largest producer of the commodity, resumes production following the Songkran holiday break.
Malaysian Rubber Glove Manufacturers’ Association immediate past president Denis Low said despite the resurgence in Covid-19 cases, optimism prevails as many countries, especially those in Europe, are moving ahead with their recovery programmes.
“The reopening of industries and businesses augurs well for rubber consumption. It is possible that rubber demand and prices will be slightly higher next week,” he told Bernama today.
The Statistics Department on Thursday said Malaysia’s natural rubber (NR) exports increased 13.5% month-on-month (m-o-m) to 54,632 tonnes in February from the 48,125 tonnes recorded in January.
Production of NR increased 9% m-o-m to 49,840 tonnes in February from 45,735 tonnes in January, while stocks increased 1.9% m-o-m to 286,117 tonnes from 280,841 tonnes in the same period.
For the week just ended, the local rubber market was influenced mainly by regional rubber futures markets, crude oil prices, concerns about the rise in Covid-19 cases globally, and trade relations between the United States and China.
On a weekly basis, the Malaysian Rubber Board’s (MRB) reference physical price for Standard Malaysian Rubber 20 (SMR 20) improved 4.5 sen to 665 sen per kg, while latex-in-bulk decreased 13.5 sen to 618.5 sen per kg.
At 5pm on Friday, MRB’s closing price for SMR 20 stood at 661 sen per kg, while latex-in-bulk was at 613.5 sen per kg. – Bernama, April 17, 2021
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