The Malaysian rubber market is likely to continue its upward momentum next week buoyed by positive outlook on the global commodity market.
A dealer said the reassurance by the members of the Organisation of the Petroleum Exporting Countries on crude oil cut and weaker ringgit against US dollar would provide some support to the market.
He said the anticipation by Toyota Motor Corp that global vehicle sales would rise by one per cent next year signalled higher demand from the car industry moving forward.
“China’s policy of extending the tax cut on small-engine vehicles by one year would further reinforce the increase in vehicle demand and this is also expected to support the rubber market,” he said.
For the week just-ended, trading was bullish but mixed towards the end with demand for tyre-grade SMR 20 remaining intact.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for SMR 20 jumped 141 sen to 926 sen a kg and latex-in-bulk added 47.5 sen to 636.5 sen a kg.
The 5 pm unofficial closing price for SMR 20 advanced 127 sen to 915 sen a kg, while latex-in-bulk gained 51.5 sen to 639 sen a kg.– Bernama