AN optimistic market outlook for rubber , driven by a better demand in China is expected to bolster Malaysian rubber prices, market observers say.
China, the world’s largest consumer for rubber, is experiencing better economic growth this year and this will uplift rubber prices. Factoring into the price hike are Chinese buyers stocking ip before the week-long Lunar New Year in early February and the low production in Thailand, Indonesia and Malaysia.
Global economic recovery and a boost in raw-material demand, accelerated by the monetary and fiscal stimulus from Japan to China and the United States will also be influencing the rubber prices.
Before the previous year’s closing, rubber prices went down, caused by the market’s dismay to the cancelled voting on tax-cut plan, casting over the US fiscal cliff progress.
Nonetheless, the local market, has picked up in line with its regional peers, benefiting from the weaker yen against the US dollar as well as concerns over tight supply for the commodity.
The Malaysian Rubber Board’s sellers’ official physical price for tyre-grade has been pegged at SMR 20 increased 22 sen to 903 sen per kg, while latex-in-bulk rose 19.5 sen to 601 sen per kg.
The unofficial sellers’ closing price for tyre-grade SMR 20 improved 23 sen to 904 sen per kg and latex-in-bulk rose 24.5 sen to 604.5 sen per kg.(RJA)
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