Rubber Market Extends Losses Amid Weaker Regional Futures

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, July 16 (Bernama) -- The Kuala Lumpur rubber market extended its losses for a second straight session on Thursday, pressured by declines in regional rubber futures markets and weaker benchmark crude oil prices, a dealer said.

He said expectations of higher natural rubber production in Thailand, a major producer, during the peak tapping season also weighed on market sentiment.

“Japanese rubber futures slipped after three consecutive gains as peak-season rubber supplies outweighed oil prices.

“Thailand’s rubber output continued to recover as the peak tapping season gathered pace and weather conditions improved,” he told Bernama.

Market sentiment was further dampened by escalating geopolitical tensions in West Asia, which continued to fuel uncertainty across global financial markets.

However, the trader said losses were partially cushioned by positive United States (US) economic data signalling easing inflationary pressures, and the European Commission’s latest measures to support the implementation of the EU Deforestation Regulation (EUDR).

”US producer prices fell 0.3 per cent in June, the sharpest decline since April 2025, easing inflation concerns.

“Meanwhile, the European Commission introduced measures to facilitate EUDR implementation, easing regulatory uncertainty ahead of its rollout in December 2026,” he said.

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) dropped by 12 sen to 885.5 sen per kilogramme, while latex in bulk shed three sen to 724 sen per kilogramme.

-- BERNAMA