Rubber Market Ends Higher On Regional Futures Strength

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Aug 24 (Bernama) -- The rubber market ended higher on Monday, supported by an uptrend in regional rubber futures markets, said a dealer.

He said the Japanese rubber futures traded in a narrow range, supported by signs of tightening supply despite pressure from easing oil prices.

“Concerns over weather-related supply disruptions in Thailand further lifted market sentiment.

“Heavy rainfall across major rubber-producing regions, particularly northern and northeastern Thailand, has disrupted tapping and reduced raw material output, with severe rain and flash floods forecast from Aug 27 to 29,” the dealer told Bernama.

Gains were further supported by a decline in Shanghai rubber inventories, firm demand from China’s tyre and synthetic rubber industries, positive United States (US) economic data and expectations of further Chinese fiscal support.

“Rubber inventories at warehouses monitored by the Shanghai Futures Exchange fell 3.3 per cent from the previous week, according to the exchange on Aug 21.

“The US services sector grew at its fastest pace in nearly two years, with the S&P Global Flash Services Purchasing Managers’ Index (PMI) rising to 56.8 in August, its highest since December 2024,” he added.

However, gains were limited by declining crude oil prices, a stronger ringgit against the US dollar and continued geopolitical uncertainty in West Asia.

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) rose by 10 sen to 957 sen per kilogramme (kg), while latex in bulk increased by 2 sen to 681.5 sen per kg.

The Kuala Lumpur rubber market will be closed tomorrow (Aug 25), in conjunction with the Maulidur Rasul public holiday and will resume operations the next day.

-- BERNAMA