3 days ago
Global Market Volatility, Supply Concerns Likely To Drive Malaysian Rubber Prices Next Week
WORLD
By Rosemarie Khoo Mohd Sani
KUALA LUMPUR, Aug 16 (Bernama) -- The Malaysian rubber market is expected to experience a mixed trend next week, as volatility in global commodity and financial markets continues to influence regional rubber futures, said the Malaysian Rubber Glove Manufacturers Association (MARGMA).
The association said key factors likely to drive the market include the latest United States (US) tariffs, the ringgit-US dollar exchange rate, and fluctuations in benchmark crude oil prices.
'MARGMA believes the tariffs could signal a slowing US economy, as they are expected to drive up the cost of imported raw materials.
'Additionally, heightened speculation regarding the appointment of the next US Federal Reserve chair is expected to contribute to market uncertainty,' it told Bernama.
The association added that developments related to US trade tariffs and interest rate policies, as well as geopolitical tensions in the Middle East, would closely be monitored by traders.
On the supply side, MARGMA said heavy rains anticipated in major rubber-producing countries, particularly Thailand, could disrupt supply.
In Malaysia, natural rubber production rose 5.9 per cent month-on-month in June 2025, indicating healthy production capacity.
It noted that the 90-day extension of the tariff pause between the US and China, together with China's 7.2 per cent export surge in July and growth in its services sector, could lend support to demand.
