KL Rubber Market Sees Slight Upward Bias Amid Higher Oil Prices

The Kuala Lumpur rubber market is expected to remain stable next week, with a slight upward bias due to higher oil prices. Industry expert Denis Low noted that crude oil prices have risen to US$108 per barrel, which will inevitably push up costs for commodities.

Low said supply and demand are experiencing 'some jolts' as more farmers and processors switch to producing dry rubber at the expense of bulk liquid latex due to better price advantages. The uptrend in the rubber market is supported by gains in regional rubber futures markets and firmer crude oil prices, while concerns over tightening natural rubber supply due to declining production in Indonesia, heavy rainfall in Thailand, and the strengthening El Niño weather pattern further underpin market sentiment.

The Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) rose 40 sen to 998.5 sen per kilogramme on a Friday-to-Friday basis, while latex in bulk gained 22 sen to 712.5 sen per kilogramme. The rubber market traded higher, with SMR 20 reaching its highest level since February 15, 2017, at 1,021.5 sen per kilogramme.