Losses in rubber mart seen limited

The Malaysian rubber market is expected to move within a narrow range next week amid weak risk appetite and a possible slowdown in global growth due to the United States and euro zone debt problems, dealers said.

"Debt concerns in the US and worsening debt crisis in the euro zone will curb risk appetite with position taking limited," a dealer said.

On the positive side, losses in the rubber market could be limited, amid demand from fund purchases on speculation that offtake would increase for tyre and glove manufacturing.

Furthermore, talk is rife that China will start buying the commodity to re-build its inventory at Qingdao rubber trading centre. The stocks declined to 70,000 tonnes from 160,000 tonnes previously," the dealer added.

On a week-to-week basis, the Malaysian Rubber Board official physical noon price for tyre-grade SMR 20 increased 10 sen to 1,382.5 sen per kg, from last Friday's 1,372.5, but latex-in-bulk slipped 10.5 sen to 886 sen, from 896.5 sen per kg, previously.

The unofficial closing price for tyre-grade SMR 20 jumped 12.5 sen to 1,381 sen per kg, from 1,368.5 sen per kg, last week while latex-in-bulk declined eight sen to 884.5 sen per kg, from 892.5 sen per kg, previously. -- Bernama