Monday, September 24, 2012

Malaysia: Rubber prices to extend strong performance next week

 
Rubber prices in Malaysia are expected to extend its strong performance with tyre-grade SMR 20 hovering between 850 sen and 900 sen per kg.

The strength can be attributed, to some extent, to initiatives by Malaysia and Indonesia to reduce production, a dealer said, adding that prices have been on an uptrend the last two weeks.

The market is hopeful the global economy would recover and, along with it, the demand for rubber.

“The rebound could only be halted and reversed if there are negative signs in the global economy,” he said, adding that there were still challenges in the path of economic recovery.

Throughout the week, rubber prices traded between 858 sen and 874 sen per kg in response to US Federal Reserve’s fresh monetary stimulus.

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.

The unofficial sellers’ closing price for tyre-grade SMR 20 rose 23.5 sen to 874.5 sen per kg and latex-in-bulk increased 16 sen to 615 sen per kg. — BERNAMA

source - rubbermarketnews.net

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