KUALA LUMPUR: The rubber market is expected to trend higher this week boosted by higher demand for the commodity amid supply disruption due to the West Asia crisis, an expert says.
Industry expert Denis Low said the war in West Asia continues to cause disruption to industry, commerce and the general well-being of all humanity.
“While the oil and gas supply is choked up in the Strait of Hormuz, a magnified collateral damage is also taking place in all industries, which will cause the factories to be eventually shut,” he told Bernama.
Low said the rubber trees are currently wintering and this may end in end-April or early May, hence, shortages of the commodity is at the tail-end and better productivity is anticipated in the weeks ahead.
“For the moment, the resulting shortage is exacerbated by better demand because of the war. Thus, the market will be volatile with an apprehensive outlook caused by the war,” he said.
He said the yo-yo oil prices and volatile US dollar may have an impact on prices and demand, causing uncertainty and may warrant caution.
The Kuala Lumpur rubber market was closed on April 3 for Good Friday. On a Friday-to-Thursday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 increased 16.5 sen to 819.5 sen per kg.
