Rubber market to trade range-bound

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With a tendency to be slightly higher mainly due to a tight supply situation.

Malaysian Rubber Glove Manufacturers Association immediate past president Denis Low said there will be a heightened need to stock up ahead of the unpredictable weather condition and traders may not want to be caught out with a short supply position.

There are reports of sporadic rainfall in some rubber-producing regions, thereby hampering productivity. “It is unusual to have such rainy spells in May and we have to mark it in order to determine whether it is a sign of the climate change factor. Farmers are already lamenting the more than usual rainy days which is jeopardising their income,” he told Bernama.

Low said trending alongside the rainy weather is the uncertainty caused by the Russia-Ukraine conflict which seems to be escalating with more countries wanting to align themselves with North Atlantic Treaty Organisation and the Americans against Russia. Such acts may trigger unnecessary retaliation and may definitely cause more tension and thus, hamper growth and recovery programmes post-pandemic.

 

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