Rubber Market Ends Mixed On Regional Futures Performance, Supply Concerns

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, July 17 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Friday, tracking regional rubber futures markets and ongoing expectations of ample natural rubber supply from major producer Thailand during the peak tapping season, a dealer said.

Japanese rubber futures fell as a pullback in synthetic butadiene rubber prices weighed on market sentiment.

Meanwhile, market players also remained cautious amid renewed concerns over the West Asia conflict, while mixed United States (US) economic data added to uncertainty over the interest rate outlook.

“US retail sales rose 0.2 per cent in June, matching market expectations, although the pace was slower than May's stronger gain. Meanwhile, US jobless claims fell to 208,000, pointing to a resilient labour market, reinforcing expectations that interest rates will remain higher for longer," he said.

Losses were partially cushioned by firmer benchmark crude oil prices and expectations of stronger industrial activity after China announced plans to support economic growth.

“China aims to boost economic growth by accelerating infrastructure projects, supporting expectations of stronger industrial activity,” he said, adding that oil prices edged higher as renewed US-Iran attacks raised concerns over supply disruptions through the Strait of Hormuz.

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) rose 1.5 sen to 887 sen per kilogramme (kg), while latex in bulk slid two sen to 722 sen per kg.

-- BERNAMA