Rubber Market Rebounds On Regional Futures Gains

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, July 3 (Bernama) -- The Kuala Lumpur rubber market rebounded from yesterday’s losses to close higher on Friday, supported by gains across regional rubber futures markets amid concerns over potential supply disruptions following heavy rain in Thailand and tropical storm warnings, a dealer said.

He said market sentiment was also boosted by gains in Japanese rubber futures on Friday, supported by a 24.4 per cent year-on-year (y-o-y) increase in Tesla's China-made electric vehicle sales in June, which improved the outlook for tyre demand. Firm raw latex prices in Thailand also provided additional support.

“Raw latex prices in Thailand, the world’s top rubber producer, averaged 73.76 baht (US$2.23) per kilogramme (kg) in the first half of 2026, up 16.54 per cent y-o-y, according to data from Zhuochuang Information Rubber Industry Observation. This has provided a cost floor for the natural rubber market,” he told Bernama.

He noted that firmer crude oil prices and growing expectations that the United States Federal Reserve may adopt a less aggressive monetary policy further boosted market sentiment.

At the time of writing, Brent crude oil price climbed 0.42 per cent to US$72.08 per barrel.

However, the dealer said further gains were partially capped by slower growth in China's services sector and weaker US factory orders, which dampened market sentiment..

“US jobs growth moderated, with the economy adding 57,000 jobs in June, signalling slower economic momentum and weighing on market sentiment,” he said.

At 3 pm today, the price of Standard Malaysian Rubber 20 (SMR 20) increased 12 sen to 872.50 sen per kg, while latex-in-bulk remained unchanged at 746 sen per kg.

-- BERNAMA