Rubber prices to continue upward until 2018, Malaysian analysts say.
Rubber prices are likely to continue rising in the near term and may reach heights previously seen earlier this year, according to market analysts in Malaysia.
Jupiter Securities chief market strategist Benny Lee, said at the country’s Global Rubber Conference today: “Current prices appear to be at the beginning of a bullish trend.” On the Tokyo Commodities Exchange, Lee projected rubber prices are likely to surpass the 278 yen resistance level next year and may see the same heights reach earlier this year of 340 yen. He said its likely Malaysian prices will follow that trend. Investment directors in the country agree, although warning the upward trend will likely correct with a sharp downward move in prices.
Other information shared at the conference said world demand for natural rubber is expected to grow 1.2% to 12.38 million tons this year while world supply is expected to grow by 5% to 12.88 million tons. Malaysia is among the top five rubber producing nations in the world. In July its NR production rose 8.7% to 54,994 tons compared to 50,614 tons in the previous month. Exports for the month rose 5.5% to 47,136 tons compared to the previous month, the country’s department of statistics said.