Rubber Market Extends Gains Amid Supply Concerns

By Danni Haizal Danial Donald

KUALA LUMPUR, Aug 27 (Bernama) -- The rubber market extended gains, closing higher on Thursday, supported by supply concerns stemming from continued rainfall in major producing regions, said a dealer.

She noted that the mixed performance of regional rubber futures markets and decreasing natural rubber inventories in China supported market sentiment.

“However, gains were limited by lower crude oil prices owing to raised hopes of the Strait of Hormuz reopening, increased concerns over inflation and weaker Chinese economic data,” the dealer told Bernama.

She said continued rainfall in China and Thailand may slow new supply, with Thailand expecting heavy rain and possible flash floods.

“Japanese rubber futures also traded higher on Thursday, as lingering supply concerns in producing regions offset a continued slide in oil prices.

“Vietnam's natural and mixed rubber exports declined 8.3 per cent to 815,000 tonnes, while shipments to China fell 14 per cent,” said the dealer.

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) rose by 1.5 sen to 959.5 sen per kilogramme (kg), while latex in bulk increased by 2.5 sen to 687 sen per kg.

-- BERNAMA