Rubber Market Ends Higher
By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, Oct 7 (Bernama) -- The Kuala Lumpur rubber market ended higher on Wednesday, tracking regional rubber futures markets' performance amid tighter rubber supply.
A dealer said weather-related disruptions affected rubber supply across major producing regions, with the haze in Indonesia, unpredictable weather in Thailand and port congestion in Côte d'Ivoire causing raw material shortages and shipment delays.
“Floods and heavy rainfall in eastern Thailand have damaged around 22,636 hectares of rubber plantations, affecting 7,679 growers and disrupting tapping activities,” she told Bernama.
Market sentiment was further lifted by firmer crude oil prices amid renewed concerns over potential supply disruptions and a positive natural rubber demand outlook.
“A more balanced supply-demand outlook in the glove sector and sustainable demand growth of around 10 per cent are supporting a healthier market environment, potentially strengthening demand for natural rubber,” she added.
Nevertheless, gains were partially capped by concerns over the global economic outlook following a widening United States trade deficit and warnings from the International Monetary Fund over persistent energy prices and rising global debt.
At 3 pm, Standard Malaysian Rubber 20 (SMR 20) rose 2.5 sen to 1,056 sen per kilogramme (kg), while bulk latex increased 5.5 sen to 764 sen per kg.
-- BERNAMA