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Malaysian rubber

KUALA LUMPUR: Malaysia rubber prices are likely to drift lower on a lack of favourable factors, possible lower consumption in the U.S. and growing output from major producers, the Malaysian Rubber Exchange and Licensing Board (MRELB) said.

In its latest market review, MRELB said prices continued to edge downward on a lack of buying support amid rising supply.

"Western tyre manufacturers have scaled down their purchases ahead of the summer holidays as prices are expected to fall further under conditions of lacklustre demand and improved supply," it said.

MRELB said that although the market was expecting another round of Chinese buying, the Chinese only made minimal purchases and were not sufficient to move the market.

Production for May was expected to improve as wintering neared its end and the prevailing good prices also encouraged a return to rubber tapping, it said.

Malaysia's rubber production was 370,446 tonnes in January-April, 23.1 percent more than the 300,857 tonnes a year earlier. Exports in the first four months of 1995 rose by 10.4 percent to 346,531 tonnes from 313,953 tonnes in the same period last year.-Reuter