Rubber Market Ends Mixed On Weak China Demand, Supply Concerns

By Abdul Hamid A Rahman

KUALA LUMPUR, Oct 1 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Thursday, pressured by weak demand from China, although concerns over supply disruptions supported prices, a dealer said.

She said weak demand from Chinese tyre manufacturers, following the completion of pre-holiday stockpiling, coupled with lower crude oil prices amid the prevailing West Asia conflict, weighed on rubber prices.

“Oil prices edged lower and traded mixed on Thursday as traders weighed signs of recovering West Asia crude flows against uncertainty over whether the improvement could be sustained,” she told Bernama.

Nevertheless, further losses were capped by natural rubber supply disruptions in major producing regions, firmer raw material costs, and a weaker ringgit against the US dollar.

“Weather-related supply disruptions supported prices, with rainfall in Thailand affecting raw material procurement and keeping latex and cup lump prices firm.

“El Niño risks also raised concerns over future supply, as potential drought conditions in Southeast Asia could affect rubber production,” she added.

At 3 pm, Standard Malaysian Rubber 20 (SMR 20) declined 16.5 sen to 1,038.5 sen per kilogramme (kg), while bulk latex increased six sen to 746 sen per kg.

-- BERNAMA