The Malaysian rubber market is likely to see a better performance next week in anticipation of the tight supply of the raw material due to the rainy season in the east coast of the country and southern Thailand, dealers said.
A dealer said the rainy season provided a positive outlook for the local market and supply of raw material would be tight.
However, he said, the movements of the futures markets in the region namely, the Tokyo Commodity Exchange, Shanghai Futures Exchange and Singapore Commodity Exchange, may also affect the local rubber prices.
“The local market may move in tandem with these regional futures markets,” he said.
Meanwhile, according to reports, producing countries may intervene in the market to support the prices.
On a week-to-week basis, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 fell 39.5 sen to 1,018 sen per kg while latex in bulk decreased by 17 sen to 675 sen per kg previously.
The unofficial closing price for tyre-grade SMR 20 fell 41.5 sen to 1,009 sen per kg while latex in bulk lost 23 sen to 672 sen per kg.
The market will resume its operations on Tuesday after the Awal Muharram holiday on Monday. — Bernama
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