Kuala Lumpur Rubber Ends Higher On China Demand, Oil Price Surge

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, July 13 (Bernama) -- The Kuala Lumpur rubber market closed higher on Monday, supported by stronger physical demand from China and higher crude oil prices, despite mixed regional rubber futures, a dealer said.

She said sentiment was also supported by resilient Chinese tyre exports, a weaker ringgit against the US dollar and firm global automotive demand.

“Japanese rubber futures rose on Monday as strong physical demand and steady Chinese tyre exports supported prices, while higher oil prices provided additional support.

“Crude oil prices jumped as renewed US-Iran military strikes threatened shipments through the Strait of Hormuz,” she told Bernama.

Higher energy prices also raised synthetic rubber production costs, making natural rubber more competitive, she added.

At the time of writing, Brent crude was up 2.99 per cent at US$78.28 a barrel.

However, gains were capped by escalating tensions in West Asia, which fuelled inflation concerns and heightened expectations of further interest rate increases by major central banks.

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) rose seven sen to 889.5 sen per kilogramme, while latex in bulk was unchanged at 729.5 sen per kilogramme.

-- BERNAMA