By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, May 29 (Bernama) -- The Kuala Lumpur rubber market ended sharply higher on Friday, reaching a new high for 2026, a dealer said.
The gains were supported by stronger regional rubber futures markets amid persistent low supply conditions in major producing countries, she said.
She noted that Japanese rubber futures were set for a weekly gain due to tight supply, firmer raw material costs, and improving market sentiment.
“Indonesia continued to face supply disruptions and weak productivity despite higher rubber prices encouraging tapping activities,” she told Bernama.
She added that market sentiment was also supported by firm raw material prices in Thailand, which remained elevated during the peak production season due to strong demand from Chinese buyers.
In addition, the trader said that sentiment was further lifted by stronger Chinese industrial profit data, amid optimism over continued investment in the tyre and rubber products sectors and the potential United States (US)-Iran peace agreement.
“China’s industrial firms’ profits rose 18.2 per cent in the first four months of 2026, indicating improving economic activities and industrial demand.
“Meanwhile, the reports indicating a potential US-Iran peace agreement improved overall market risk appetite and eased concerns over prolonged geopolitical tensions," she added.
However, further gains were partially capped by concerns over slowing US economic growth.
“US first-quarter gross domestic product growth was revised lower to 1.6 per cent, reflecting softer economic momentum amid inflationary pressures,” she said.
At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 surged 24 sen to 922 sen per kilogramme (kg), while latex-in-bulk inched up 0.5 sen to 759 sen per kg.
The Kuala Lumpur rubber market will be closed on Monday, June 1, and Tuesday, June 2, in conjunction with the Yang di-Pertuan Agong's Birthday and Wesak Day replacement holiday, and trading will resume on Wednesday, June 3.
-- BERNAMA
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