Rubber Market Closes Lower On Softer China Demand, Weaker US Economic Data

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, July 7 (Bernama) -- The Kuala Lumpur rubber market closed lower on Tuesday, weighed down by softer near-term demand from China and weaker economic data from the United States.

A dealer said that Chinese tyre manufacturers faced weak new orders and high inventories, prompting some factories to begin maintenance shutdowns and reducing near-term rubber demand.

“Meanwhile, the US services activity eased to 54.0 in June, while employment rebounded after three months of contraction,” he told Bernama.

He added that market sentiment was further dampened by a slightly stronger ringgit against the US dollar and renewed geopolitical tensions in West Asia.

At 8 am, the local note rose to 4.0815/0880 against the greenback compared with 4.0825/0875 at Monday’s close.

Nevertheless, the dealer said that further losses were capped by gains in regional rubber futures markets, higher benchmark crude oil prices, concerns over tighter raw material supply following forecasts of heavy rainfall in Thailand, a major natural rubber producer, and positive vehicle sales in the United Kingdom.

“Oil prices rose on renewed security concerns in the Strait of Hormuz, outweighing expectations of higher global crude supplies.

“Meanwhile, the Thai Meteorological Department (TMD) issued a seven-day weather outlook from July 5 to July 11, 2026, stating that heavy to very heavy rainfall is expected in parts of Thailand,” he said.

At the time of writing, Brent crude rose 1.36 per cent to US$72.97 per barrel.

At 3 pm today, the price of Standard Malaysian Rubber 20 (SMR 20) declined one sen to 886 sen per kg, while latex-in-bulk slid by five sen to 736 sen per kg.

-- BERNAMA