KUALA LUMPUR — The Malaysian rubber market will likely remain bearish next week, tracking the commodity’s weak performance on the Tokyo Commodity Exchange (TOCOM). A dealer said TOCOM rubber futures, which set the tone for tyre rubber prices in Southeast Asia, ended the week at its lowest in more than six years.
“The lower China’s manufacturing data also weighed on rubber prices as players are worried that this is potentially signalling that the economy of the largest consumer of rubber is losing growth momentum.
“While the weakening ringgit may prompt buying interest for the commodity, however, gains will be capped by concerns over ample supplies,” he added.
On a weekly basis, the local market was traded lower with the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 down 25 sen to 508.5 sen a kg while latexin- bulk declined 6.5 sen to 409 sen a kg.
The 5pm unofficial closing price for SMR 20 declined 28 sen to 507 sen a kg while latex-in-bulk slipped seven sen to end the week at 408 sen a kg. The trading week was short by one day as the local market was closed on Monday for the Merdeka holiday.