Rubber Market Ends Lower On Softer Oil Prices, Firmer Ringgit

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Aug 13 (Bernama) -- The rubber market ended lower on Thursday, pressured by lower crude oil prices and a slightly stronger ringgit against the US dollar, a dealer said.

At the time of writing, Brent crude was down by 1.75 per cent to US$87.42 per barrel.

“Oil prices dipped on Thursday as investors assessed prospects for weaker global demand this year, though they were underpinned by a lack of major progress in talks over the blockaded Strait of Hormuz and disruptions to supply,” she told Bernama.

The dealer said concerns over global rubber demand and softer tyre industry activity also weighed on market sentiment.

She pointed out that Malaysia’s natural rubber (NR) production increased by 31.5 per cent to 26,553 tonnes in June 2026 from 20,198 tonnes in May 2026.

“Nevertheless, further losses were capped by continued global electric vehicle (EV) sales growth in July, while El Nino concerns and expectations of firmer tyre demand in the coming months provided some support.

“Global EV sales rose nine per cent year-on-year to 1.85 million units in July, supported by strong growth in Europe, while El Nino concerns may tighten supply later this year, providing some support to prices,” she added.

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) declined by 1.5 sen to 916 sen per kilogramme (kg) while latex in bulk decreased 0.5 sen to 692 sen per kg.

-- BERNAMA