Rubber Market Ends Lower On Weak US Labour Data

By K. Naveen Prabu

KUALA LUMPUR, Aug 10 (Bernama) -- The Kuala Lumpur rubber market ended lower on Monday, weighed down by weaker-than-expected United States (US) labour market data, a dealer said.

She said US employment fell by 23,000 jobs in July, while previous job gains were revised lower, raising concerns over slowing economic activity and weakening commodity demand.

The dealer said market sentiment was further weighed down by subdued inflation in China.

“China’s consumer price index (CPI) growth slowed to 0.5 per cent in July, while the producer price index (PPI) remained in deflation, declining 3.5 per cent, signalling weak domestic demand and continued economic pressure,” she told Bernama.

Nevertheless, she said the decline was partially cushioned by lower rubber inventories monitored by the Shanghai Futures Exchange (SHFE).

“SHFE rubber inventories fell 0.7 per cent week-on-week, indicating tighter stocks and providing support for rubber prices,” the dealer said. 

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) rose by five sen to 904 sen per kilogramme (kg), while latex in bulk decreased by 0.50 sen to 691 sen per kg.

-- BERNAMA