Kuala Lumpur, June 7 (Bernama) -- Uncertainty in global economic growth is expected to cause dull demand in the local rubber market next week due to a "pause of" a 90-day U.S. tariff counties.
Industry expert Denis low said that the capricious US tariffs have disrupted global trade, disrupted financial markets, and made market traders more cautious.
The dominant sentiment will affect the demand for most commodities, including rubber.
"Any transaction will be mostly based on locked contracts and will only be used as a supplement," he told Bernama.
Therefore, Low expects the rubber market to remain relatively calm, in a horizontal direction, and the price is on a downward trend.
"Exchange rates fluctuate dramatically, with such large fluctuations every day, it is difficult for companies to decide whether to hedge or suffer losses in severe fluctuations. Remember that hedging can also incur costs," he added.
At the same time, Low pointed out that the Meteorological Agency of Malaysia (MetMalaysia) has issued warnings for thunderstorms, heavy rains and strong winds to parts of the Malaysian Peninsula and Sabah.
At the same time, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said that the rubber market is expected to show a mixed trend next week as U.S.-China trade negotiations and negotiations are underway.
Demand may be affected by China's manufacturing industry, which unexpectedly shrank in May, while the growth of the Asia-Pacific region's GDP is now expected to drop to an average of four percent in 2025.
"However, due to the rainy season in major producers, rubber prices will be affected, coupled with the regional rubber futures market," the association said.
The Kuala Lumpur rubber market performed mixed in the week just ended.
The Malaysian Rubber Bureau's standard Malaysia Rubber 20 (SMR 20) fell by 7.5 sen to 691.0 sen per kg, while bulk latex fell by 19 sen to 601.5 sen per kg.
