KUALA LUMPUR — The Malaysian rubber market is expected to continue its downward momentum next week in tight trading on lack of buying interest, said a dealer. Market sentiment is expected to be affected by the slower demand from China, the top consumer for the commodity.
“Rubber market players would remain cautious on further movements of the ringgit, ahead of expectations of a Federal Reserve interest rate hike next month as well as the movement ofcrude oil prices,” he told Bernama. For the week just ended, rubber prices were traded mostly lower due to the strengthening of the ringgit against the US dollar, persistent worries over China’s economy and weak crude oil prices.
On a weekly basis, the local market was traded lower throughout the week, with the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 slipping 27.5 sen to 494.5 sen a kg while latex-in-bulk fell 12.5 sen to 374.5 sen a kg. The 5 pm unofficial closing price for SMR 20 slipped 25 sen to 522 sen a kg while latex-in-bulk trimmed 12 sen to end the week at 386 sen a kg.