MALAYSIA: Rubber market to remain subdued

The Malaysian rubber market is expected to remain subdued in the foreseeable future on bearish external sentiment.

A dealer said rubber price trendsetter the Tokyo Commodity Exchange (Tocom) hit another seven-year low on 8 Jan 2016 and is on track for its biggest weekly loss in four months, dragged down by worries over plunging stock prices in China, slumping oil markets and a stronger yen. “The outlook for the market is uncertain as market operators are concerned about slowing demand from China and lower crude oil prices,” he said.

In early-January 2016, rubber prices were mostly lower, influenced by external factors, including the weakening of crude oil prices and softening of China’s economy, the world largest rubber consumer.

The Malaysian Rubber Board’s sellers’ official physical price for tyre-grade SMR 20 fell 17.5 sen to 462 sen a kg in early-Jan. 2016, while latex-in-bulk slipped one sen to 330.50 sen a kg.

Meanwhile, the unofficial closing price for tyre-grade SMR 20 eased 19.5 sen to 461 sen a kg, while latex-in-bulk declined 5.5 sen to 339 sen a kg.

Source: Daily “New Straits Times”, Kuala Lumpur; 9 Jan 2016
(Syed Rashid Ali, Karachi, Pakistan)