KL Rubber Market to Remain Stable Next Week Amid Rising Oil Prices

The Kuala Lumpur rubber market is expected to remain stable next week, with a slight upward bias due to rising oil prices. Oil prices have surged to US$108 per barrel, which is likely to impact commerce and industries, pushing up commodity prices.

Dennis Low, an industry expert, noted that the supply and demand in the rubber market are experiencing 'some jolts' as more farmers and processors switch to producing dry rubber at the expense of bulk liquid latex. This shift is driven by a better price advantage for dry rubber.

The rubber market has been trading higher, with Standard Malaysian Rubber 20 (SMR 20) reaching a new high of 1,021.5 sen per kilogramme on September 9. The uptrend is supported by gains in regional rubber futures markets and firmer crude oil prices.