Malaysian rubber prices expected to remain strong

KUALA LUMPUR – Rubber prices in Malaysia are expected to remain strong with tyre-grade SMR 20 pegged between 850 sen and 900 sen per kg. This extended strong performance is partly brought about by Malaysia as well as Indonesia’s moves to reduce production, a dealer says.
Throughout the week, rubber prices traded between 858 sen and 874 sen per kg as a result of the US Federal Reserve’s new monetary stimulus.
Recovery of the global economy is still a critical factor to improve rubber demand and consequently bring optimistic market results.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s sellers official physical price for tyre-grade SMR 20 increased 32.5 sen to 874.5 sen per kg while latex-in-bulk rose 19.5 sen to 612.5 sen per kg.
Whereas, the unofficial sellers’ closing price for tyre-grade SMR 20 hikes up from 23.5 sen to 874.5 sen per kg; whilst latex-in-bulk increased 16 sen to 615 sen per kg. (RJA)