Malaysia: Rubber mart to rise on buying interest next week

The Malaysian rubber market will likely trend higher next week on increasing overseas demand, dealers said.

A dealer said buying was expected to increase as trading would go full steam ahead after the three-day Hari Raya and Merdeka Day holidays.

“The rise in car sales in US and rising US manufacturing activities will boost demand for rubber,” he said.

The market participants expected car sales to rise after the summer holiday season to boost global demand for rubber despite the weak US and European economies, he said.

Earlier reports showed that US, Spanish and French car sales picked up in August and the Japanese supplies had recovered after the March earthquake.

The Malaysian rubber market ended the holiday-shortened week on a strong note as it played catch-up after the holidays despite the weaker prices in key regional rubber markets as investors awaited the release of key US jobs data. On a week-to-week basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 surged 23.50 sen per kg to 1,381.50 sen while latex-in-bulk rose three sen to 870 sen per kg.

The unofficial sellers’ closing price for tyre-grade SMR 20 advanced 25 sen per kg to 1,379.50 sen while latex-in-bulk rose two sen to 867.50 sen per kg. — Bernama

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20110903115416/Article/index_html