Rubber Market Ends Higher Boosted By Gains In Shanghai Rubber Futures

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Dec 2 (Bernama) -- The Kuala Lumpur rubber market ended higher today, driven by sharp gains in the Shanghai rubber futures, supported by positive Chinese economic data, a dealer said. 

She said prices were also supported by a weaker ringgit against the US dollar and concerns over tight natural rubber (NR) supply due to heavy rains in major producing countries.

“Further gains were capped by mixed crude oil prices and regional rubber futures markets. Traders were cautiously keeping a close watch on the escalating trade tension caused by the new tariff policy of the United States,” the dealer told Bernama. 

Meanwhile, Southern Thailand continues to endure heavy rainfall, with the country’s Meteorological Department warning that downpours will persist across eight provinces, exacerbating already critical flood conditions after a week of relentless rain.

“Several rubber-producing states in Malaysia were also hit by floods resulting from the continuous rains,” she said, adding that China’s official Manufacturing Purchasing Managers’ Index (PMI) rose to 50.3 in November, compared to 50.1 in the previous reading.

The dealer also said that the Donald Trump administration’s proposed policy changes, referred to as Trumponomics 2.0, are expected to significantly benefit the US economy, while creating challenges for other global economies, according to Bank of America (BofA).

“This policy package, which emphasises trade, immigration, fiscal initiatives, and deregulation, is predicted to boost US economic growth, inflation, and interest rates beyond current consensus expectations.

“However, its impact on other nations, particularly China and the Eurozone, is anticipated to be less advantageous,” she noted.

The Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) rose by 14.0 sen at 889.5 sen per kilogramme (kg), while latex-in-bulk remained unchanged at 672.0 sen per kg.

At 5 pm, SMR 20 stood at 892.5 sen per kg, and latex-in-bulk was at 672.5 sen per kg.

-- BERNAMA