KL Rubber Market Closes Mixed Amid Regional Gains

By Danni Haizal Danial Donald

KUALA LUMPUR, Oct 22 (Bernama) -- The Kuala Lumpur rubber market closed mixed on Thursday, as firmer regional rubber futures supported sentiment, while subdued demand from China’s tyre manufacturing sector capped further upside, a dealer said.

The dealer said sentiment was underpinned by rising crude oil prices amid escalating geopolitical tensions in West Asia and concerns over lower-than-expected production in major rubber-producing countries.

“However, gains were capped by subdued demand from China, where tyre production remained below year-earlier levels despite factories resuming operations after the National Day holiday, reflecting a slow recovery in the tyre sector,” she told Bernama.

She said Japanese rubber futures edged higher on Thursday amid concerns over lower-than-expected output in major Southeast Asian producing countries, fuelling supply concerns and supporting prices.

“At the same time, crude oil prices rose amid escalating tensions in West Asia, while US crude inventories fell by 3.06 million barrels to 412.5 million barrels, supporting demand for natural rubber as an alternative to synthetic rubber,” she said.

At the time of writing, Brent crude futures had risen 3.3 per cent to US$112.36 a barrel.

Meanwhile, China’s rubber tyre output fell 3.3 per cent year-on-year to 100.85 million units in September, while a slow recovery in factory activity and sluggish restocking continued to weigh on market sentiment, she added.

At 3 pm, the Malaysian Rubber Board’s Standard Malaysian Rubber 20 (SMR 20) price fell 2.5 sen to 1,034.5 sen per kilogramme (kg), while bulk latex rose three sen to 794.5 sen per kg.

-- BERNAMA