Rubber market set to trade with upward bias

The Malaysian rubber market is expected to trade in a range-bound pattern with an upward bias this week.The Malaysian Rubber Glove Manufacturers Association’s past president Denis Low said that uncertainties will be the primary determinant of the rubber market in the next several weeks, in both supply and demand.

“With an intensifying conflict in Ukraine and Palestine, the number of uncertainties being created for economies worldwide will also escalate. Consequently, these growing geopolitical uncertainties will inevitably impact the industrial consumption of rubber globally, leading to lower demand and lower prices as well,” he told Bernama.

Low said that for next week, a cautious approach to purchasing is anticipated, as the North-East monsoon approaches, which can last for several months.

“Stock replenishment is always necessary but the increasing need to stock up poses a significant challenge in light of the impending monsoon. If the weather forecast is correct, heavy torrential rainfall is expected in the days ahead. Obviously, rubber production will be severely affected if the fields are flooded as well,” he said.

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