Rubber Market Ends Higher On Stronger Oil, Synthetic Rubber Prices

By K. Naveen Prabu

KUALA LUMPUR, March 24 (Bernama) -- The Kuala Lumpur rubber market ended higher today, supported by stronger crude oil prices, a trader said.

She said oil prices rose amid supply concerns after Iran denied holding talks with the United States to end the Gulf conflict, contradicting Donald Trump’s claim that a deal could be reached soon.

At the time of writing, Brent crude had risen 1.02 per cent to US$101.0 per barrel.

The dealer noted that market sentiment was further boosted by stronger synthetic rubber prices, which encouraged a greater shift toward natural rubber (NR).

“It was reported that a recent surge in butadiene rubber prices led manufacturers to substitute synthetic rubber for NR,” she said. 

Nevertheless, the dealer said the upside momentum was capped by mixed signals surrounding the West Asia conflict and ongoing concerns over its economic implications.

“According to the World Trade Organisation, growth of goods in world trade will slow down markedly to 1.9 per cent this year from 4.6 per cent in 2025, and could decelerate even more if the West Asia war continues to push energy prices higher and disrupt global transport,” she said. 

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 increased 16 sen to 774.50 sen per kilogramme (kg), while latex-in-bulk was up by one sen to 678 sen per kg.

The Kuala Lumpur rubber market was closed from Friday (March 20) to Monday (March 23) for the Hari Raya Aidilfitri celebration and resumed operations today.

-- BERNAMA