Kuala Lumpur Rubber Market Extends Losses, Tracking Regional Futures Decline

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, June 25 (Bernama) -- The Kuala Lumpur rubber market ended sharply lower for the third consecutive day, tracking broad-based declines in regional rubber futures markets amid growing expectationS of improved supply availability, a dealer said.

She said market sentiment was weighed down by reports of increased Thai rubber shipments to China and higher forecast for global natural rubber production in 2026 from the Association of Natural Rubber Producing Countries (ANRPC), signalling easing supply tightness.

“Thailand is offering 8,000 tonnes of front-month rubber cargoes to China, signalling greater near-term supply availability.

“ANRPC projected global natural rubber production to rise by 2.4 per cent to 15.34 million tonnes in 2026, reinforcing expectations of a more comfortable supply outlook,” she told Bernama.

She said that additional pressure came from lower crude oil prices and expectations that United States interest rates may remain elevated for longer amid persistent inflationary pressures.

The trader said that lower Brent crude oil price forecasts reflected expectations of softer oil demand and weaker commodity prices.

At the time of writing, Brent crude fell 1.76 per cent to US$72.44 per barrel.

“Meanwhile, persistent inflationary pressures in the United States strengthened expectations of higher-for-longer interest rates, raising concerns over global economic growth and commodity demand prospects,” she said.

However, losses were partially cushioned by positive developments in the automotive sector, including the global expansion ambitions of one of China's leading automakers and a recovery in the United Kingdom's vehicle production and exports.

At 3 pm today, the price of Standard Malaysian Rubber (SMR) 20 declined 33 sen to 907.5 sen per kilogramme (kg) while latex-in-bulk was down by 10 sen to 779.5 sen per kg. 

-- BERNAMA