Natural rubber (NR) prices could, according to the Malaysian Rubber Board (MRB), see slight increases until early 2021,weighed heavily by supply decline and increasing demand from countries such as China; uncertainties surrounding the COVID-19 pandemic could also keep prices “range-bound” in that same time, MRB noted.
Kuala Lumpur-based MRB observed that supply decline was caused by a combination of reduced tapping activities, unexpected leaf fall disease and erratic weather, including wintering season in NR-producing Southern Sumatera, Indonesia.
Commenting on a recent price jump in the local rubber market – the highest level reached since January 2020 at US$1.40/kg – MRB said that this was likely due to demand recovery from China and expectation on tight supply of NR in major rubber producing countries. Prices nonetheless drifted toward the latter part of the month after a global spike in new COVID-19 cases, a stronger ringgit against the US dollar, slumping oil prices and sharp losses in global equity markets.