MALAYSIA: The price of natural rubber is estimated at MYR 4 to MYR 5 per kg

Natural rubber prices are expected to range from MYR 4 to MYR 5 per kilogram this year from an average of MYR 4.29 per kg last year. Natural rubber has consistently remained below MYR 4 per kg since October, said Hong Leong Investment Bank (HLIB) in its research note. The investment bank expects 2019 to show an uncertain and volatile movement of the price of natural rubber. This will be in line with the ethylene price velocity, the raw material for synthetic rubber in Asia.

It said low prices of natural rubber would benefit glove manufacturers, especially those with natural rubber products. "We expect natural rubber prices to be around MYR 4 to MYR 5 per KG in 2019, assuming there is no supply disruption," HLIB said. World natural rubber production is expected to grow by 5.8 per cent to 14.696 million tons this year while global consumption is projected to increase by 3.6 per cent to 14.730 million tons. Malaysia is currently the fifth largest producer of natural rubber in the world with a production of 670,000 tons/year after Thailand, Indonesia, Vietnam and China.

Source: Daily “The New Straits Times”, Kuala Lumpur; 11 Jan 2019
(Syed Rashid Ali, Karachi, Pakistan)