KUALA LUMPUR, April 20 — The Malaysian rubber market is likely to trade quietly yet steady next week, influenced by local demand and movements of regional rubber futures market, amid worries over declining global rubber prices, said a dealer.
The dealer hopes that the decision made by the International Tripartite Rubber Council (ITRC), comprising Thailand, Indonesia and Malaysia, to limit total rubber exports to 240,000 tonnes for four months since April 1, 2019 could help offset some negative impact on the commodity in the near term.
The implementation of export cuts by ITRC countries was made through the 6th Agreed Export Tonnage Scheme.
“Besides that, the wintering season in several rubber-growing areas has reduced the supply of raw material and provided some support.
“However, speculation in futures market, currency fluctuations, volatile oil prices and concerns over global economic slowdown may hinder natural rubber prices from moving higher,” she told Bernama.
On a Thursday to last Friday’s basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 dropped 15.5 sen to 615.00 sen a kg from 630.5 sen a kg last week, while latex-in-bulk shed 8.0 sen to 497.00 sen a kg from 505.00 sen a kg.
The 5pm unofficial closing price of SMR 20 fell 15.5 sen to 612.5 sen a kg from 628.00 sen a kg, while latex-in-bulk was 12.5 sen lower at 492.00 sen a kg against 504.5 a kg previously.
The Malaysian rubber market was closed on Friday for the Good Friday celebration. — Bernama
Source: The Malay Mail Online