Rubber Market Closes Mixed With SMR 20 Uptrend On Regional Gains

By Muhammad Fawwaz Thaqif Nor Afandi and Durratul Ain Ahmad Fuad

KUALA LUMPUR, Jan 7 (Bernama) -- The Kuala Lumpur rubber market closed mixed on Wednesday, with Standard Malaysian Rubber (SMR) 20 prices continuing their uptrend supported by gains in regional rubber futures markets, a dealer said.

She said market sentiment was strengthened by China's latest stimulus measures and concerns over tightening raw material supplies in major natural rubber-producing countries due to the persistent wet weather.

However, further gains were limited by weaker crude oil prices.

“The Japanese rubber futures were steady on Wednesday, after briefly touching a 10-month high earlier amid concerns that the wet weather in key producer country Thailand could disrupt production.

“Thailand's Meteorological Department warned of isolated heavy thunderstorms in the southern region from Jan 6-9, a key rubber-producing area, which continued to exert upward pressure on prices," she told Bernama.

Globally, she said oil prices declined after the United States President Donald Trump said the US had reached a deal to import US$2 billion worth of Venezuelan crude, raising expectations of increased oil supply to the world’s largest consumer.

At 3 pm, SMR 20 increased by 4.5 sen to 764.50 sen per kilogramme (kg), while latex in bulk was down slightly by one sen per kg to 577 sen per kg.

-- BERNAMA