KUALA LUMPUR: The benchmark Standard Malaysian Rubber (SMR) 20 is expected to average higher around RM5.80 per kg this year versus an average of RM5.53 per kg in 2014 boosted by renewed demand for the commodity.
Head, Economics and Rubber Exchange Division of the Malaysian Rubber Exchange Muhammad Ghazally Rosli said although rubber inventories in China were up 3.4 per cent, it would deplete fast and prompt fresh buying.
China is the largest consumer of natural rubber in the world.
“There are factors throughout the year that we need to take heed of as it will have an impact on rubber prices which includes the price of other commodities like crude oil, gold and currencies,” he told Bernama.
Sentiment in the rubber market was also most likely to be uplifted by ongoing talks on propping up rubber prices and ensuring long-term price stability by the Association of Natural Rubber Producing Countries which produced 92 per cent of the world’s natural rubber.
Plantation, Industries and Commodities Minister Datuk Douglas Uggah Embas had said in May that the outcome on strategies and actions to curb low rubber prices would be reached after October 15 when the proposals during the annual general meeting of the ANRPC would be presented for deliberation.
The meeting between the member countries would ensure a common trading platform for rubber that would link the existing systems in the ANRPC member countries to provide a more reflective price for natural rubber based on supply and demand fundamentals. — Bernama