MARKET • 22/12/2025 05:36 PM

Rubber Market Up On Steady Oil Prices, Supply Shortages

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Dec 22 (Bernama) -- The Kuala Lumpur rubber market closed higher on Monday, driven by steady crude oil prices and concerns over natural rubber supply shortages due to adverse weather in major producer, Thailand, a dealer said.

He said the market sentiment was further supported by the Association of Natural Rubber Producing Countries (ANRPC) forecast of rising demand in 2025 and China's central bank’s decision to keep its prime rates unchanged while introducing monetary measures to boost the economy.

It was reported that global natural rubber demand is expected to rise 0.8 per cent in 2025, supported by Indonesia's consumption, while production is projected to grow 1.3 per cent.

"However, gains were limited by a slightly stronger ringgit, mixed trends in regional rubber futures, and fresh geopolitical tensions in the Middle East," he told Bernama.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 rose 8.0 sen to 731 sen per kilogramme (kg), while latex-in-bulk was up by 2.0 sen to 577 sen per kg.