KUALA LUMPUR: The Malaysian rubber market is expected to trade range-bound with an upside bias this week, supported by demand from China and possible stocking activities in Europe.
There is a strong inclination that prices could climb steadily on consistent buying from China, seen in recent weeks, and European stocking activity ahead of the end of summer holidays, said Denis Low Jau Foo, the immediate past president of the Malaysian Rubber Glove Manufacturers Association.
“Despite the surge in Covid-19 cases in Europe, it is apparent that the Europeans are determined to open up their economies and therein Iies the opportunity for rubber demand to pick up,” he told Bernama.
However, local bulk latex is expected to hover around in the previous week’s level due to rainfall in the rubber-producing areas, he added.
“The market saw less consumption by glove manufacturers due to the shut down of glove manufacturing factories for two weeks and perhaps even longer depending on the Covid-19 cases in Malaysia,” Low noted.
For the week just ended, Malaysian rubber was traded firmly with gains for five straight sessions.
On a weekly basis, the Malaysian Rubber Board’s (MRB) reference physical price for SMR 20 increased by 21 sen to 690 sen a kilogramme (kg), while latex-in-bulk rose 23 sen to 507 sen a kg.
At 5pm on Friday, the MRB’s closing price for SMR 20 stood at 684 sen a kg, while latex-in-bulk was at 503 sen a kg. — Bernama