Rubber market to remain on downtrend next week

CORONAVIRUS | The Malaysian rubber market is likely to continue its downward trend next week due to sluggish demand as Covid-19 lockdowns in Thailand and Indonesia takes place.

Speaking to Bernama, the Malaysian Rubber Glove Manufacturers Association (Margma) president Denis Low said there will be uncertainties with trading volume expected to be low.

“It is uncertain whether the Thais and Indonesian government will allow tapping and movement of rubber or not, hence we will have to endure the week of uncertainties causing the market to be muted,” he said, adding that there is a strong tendency of prices moving further downwards.

However, he said prices may shoot up if there is absolutely no tapping activities causing a severe shortage of the commodity.

On Wednesday, Prime Minister Muhyiddin Yassin announced the movement control order (MCO) period will be extended to April 14.

The rubber market, for the week just ended, endured a difficult period with the price of the benchmark SMR 20 falling to the lowest level since February 2016.

On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference physical price for SMR 20 fell 49.5 sen to 465.5 sen a kg, while latex-in-bulk lost nine sen to 415.5 sen a kg.

- Bernama

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