Industry expert Denis Low expects the Malaysian rubber market to experience volatility with a slight downward trend this week due to a shortage of crude oil passing through the Strait of Hormuz.
He noted that the uncertainty in the peace agreement between the United States (US) and Iran has also influenced the situation, causing almost all goods to experience shortages and pushing up prices.
He told Bernama, “When uncertainty and shortages occur, prices will become volatile due to the dynamics of the shortages and it may trigger excessive profit-taking activities.”
He added, “The reality of shortages is understandable, but excessive profit-taking may not be sustainable.”
Low also explained that the current geopolitical situation has also caused the prices of certain commodities to rise more than expected, in addition to reducing or limiting demand for other goods.
As a basis for comparison from Friday to Friday, the Malaysian Rubber Board (MRB) reference price for Malaysian Quality Rubber 20 (GMM 20) increased by 37.5 sen to 841 sen per kilogram, while the price of bulk latex decreased by 10.5 sen to 757.5 sen per kilogram.
