KUALA LUMPUR, June 3 (Bernama) – The Kuala Lumpur rubber market is expected to trade lower on muted demand for the commodity with demand and prices likely to be stagnant.
Malaysian Rubber Glove Manufacturers Association's immediate past president Denis Low expected another flattish week with the usual replenishment activities only.
"There will be the usual stock replenishment activities while interest in more rubber stock purchases for the moment will be muted.
"There is hope that with the current influx of tourists and other trade promotional activities across the world, rubber demand and better prices can be envisaged in the months ahead.
"For now, it will be the usual replenishment activities only," he told Bernama.
Meanwhile, another dealer said prices will continue to track the performance of regional rubber futures markets, the strength of the ringgit against the US dollar and benchmark crude oil prices amid progress in US debt negotiations and higher hopes that the US Federal Reserve might pause interest rates in its June meeting.
"Markets will continue to focus on US debt negotiations, the outcome of the Organisation of the Petroleum Exporting Countries and allies (OPEC+) meeting on supply cuts, the US unemployment report for May coupled with the weather condition in Thailand for further insights into the natural rubber market," she said.
On a weekly basis, the Malaysian Rubber Board's (MRB) reference physical price for Standard Malaysian Rubber 20 (SMR 20) decreased by one sen to 601.5 sen from 602.5 sen a kilogramme (kg) registered last Friday.
Latex-in-bulk rose 3.5 sen to 495 sen a kg from 491.5 sen a kg a week earlier.
At 5 pm on Friday, the MRB's reference price for physical rubber SMR 20 stood at 602.5 sen a kg, while latex-in-bulk was at 494.5 sen a kg.
– BERNAMA
TAGS: Rubber, SMR 20, Latex-in-bulk, Weekly, Denis Low