Rubber Market Closes Higher Amid Stronger Economic Data

By Danni Haizal Danial Donald

KUALA LUMPUR, Oct 19 (Bernama) -- The Kuala Lumpur rubber market closed higher on Monday, as stronger-than-expected key economic data supported market sentiment, said a dealer.

The dealer said market sentiment was supported by China’s economic growth in the third quarter of 2026 (3Q) and positive United States economic data.

“The resumption of production among Chinese tyre manufacturers and concerns over raw material supply due to the risk of a stronger El Nino further lifted market sentiment,” he told Bernama.

He said China’s economic growth accelerated to 4.5 per cent year-on-year in 3Q, exceeding expectations and easing pressure for further stimulus.

“Tyre manufacturers in China gradually resumed production, boosting capacity utilisation, although high raw material costs kept some producers’ output in check,” he said.

Quoting the US Federal Reserve, he said the US manufacturing output rose 0.3 per cent in September after a revised 0.2 per cent decline in August.

At 3 pm, the Malaysian Rubber Board’s Standard Malaysian Rubber 20 (SMR 20) price increased four sen to 1,036.5 sen per kilogramme (kg), while bulk latex rose three sen to 793.5 sen per kg.

-- BERNAMA