Rubber Market Ends Lower On Expectation Of Higher Supply From Thailand
By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, July 15 (Bernama) -- The Kuala Lumpur rubber market closed lower on Wednesday, despite gains across regional rubber futures markets.
A dealer said the expectation of increased natural rubber supply from Thailand's peak tapping season weighed on market sentiment.
“Thailand is gradually entering its peak tapping season, increasing expectations of higher natural rubber supply. Seasonal production is expected to remain elevated through September, limiting upside potential for rubber prices,” she told Bernama.
The dealer noted that sentiment was further pressured by weaker-than-expected second-quarter economic growth in China, which highlighted softer demand prospects, as well as a stronger ringgit against the US dollar. “China's economy grew by only 4.3 per cent in the second quarter, missing market expectations and the government's 2026 growth target,” she added.
However, the losses were partially cushioned by higher crude oil prices following renewed US-Iran hostilities in West Asia and growing expectations that the US Federal Reserve may adopt a less aggressive monetary policy following softer US inflation data.
“Crude oil prices rose following renewed US-Iran hostilities, raising concerns over potential disruptions to West Asia oil supplies. Meanwhile, the softer-than-expected US inflation at 3.5 per cent in June strengthened expectations that the Federal Reserve may delay further interest rate hikes,” she added.
At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) dropped by three sen to 897.5 sen per kilogramme, while latex in bulk shed 1.5 sen to 727 sen per kilogramme.
-- BERNAMA