Rubber Market Ends Lower On Weaker Regional Futures

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Sept 15 (Bernama) -- The Kuala Lumpur rubber market ended lower on Tuesday, weighed down by weaker regional rubber futures, a dealer said.

He said that Japanese rubber futures fell for the fifth straight session, dampened by the softer tyre demand in China and a technical correction after prices failed to break recent highs, even as oil prices climbed.

The dealer added that market sentiment was further pressured by mixed Chinese economic data, expectations of a United States (US) Federal Reserve rate hike and renewed geopolitical tensions in West Asia.

“China's economy continued to face weak domestic demand in August, with the prolonged property sector downturn weighing on economic growth, while its industrial output rose 5.2 per cent year-on-year in August, up from 4.5 per cent in July and above expectations,” he told Bernama.

Nevertheless, losses were limited by gains in crude oil prices, and concerns over potential natural rubber supply disruptions due to the strengthening El Niño outlook.

At 3 pm, the price of SMR 20 fell 9.5 sen to 967 sen per kilogramme (kg), while latex in bulk decreased 0.5 sen to 710 sen per kg.

The rubber market will be closed on Wednesday, Sept 16, in conjunction with Malaysia Day and will resume operations the following day.

-- BERNAMA