Kuala Lumpur Rubber Market Hits New 2026 High On Regional Gains

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, June 3 (Bernama) --The Kuala Lumpur rubber market rose sharply on Wednesday, reaching a new high for 2026.

This increase followed gains in most regional rubber futures markets and was supported by stronger crude oil prices, as the ringgit weakened against the US dollar, said a dealer.

She said sentiment was supported by the ongoing supply tightness and lower yields in key producing countries following weather-related disruptions amid renewed US-Iran tensions, amid positive demand from the global automotive and manufacturing sectors.

“Nevertheless, further upside was limited by concerns over additional US tariff actions and expectations of tighter monetary policy in major economies due to persistent inflationary pressures,” the dealer told Bernama.

She also said heavy rainfall in southern Thailand continued to disrupt rubber tapping activities, while dry weather and high temperatures in Indonesia and Malaysia reduced rubber yields.

The dealer noted that, according to the Association of Natural Rubber Producing Countries, global natural rubber production declined by about 2.6 per cent year-on-year in April 2026, while global consumption increased by 2.3 per cent, indicating a widening supply-demand imbalance.

She said China's services Purchasing Managers’ Index (PMI) rose to a three-month high of 54.4 in May, reflecting stronger business activity and improving demand conditions.

“Global automotive demand remained supportive as Chinese multinational electric vehicle and battery manufacturer BYD returned to sales growth in May and Chinese automakers continued expanding their presence in Europe,” said the dealer, adding that US manufacturing activity expanded to its highest level in four years, signalling resilient industrial demand.

She pointed out that ASEAN manufacturing PMI rose to 51.5 in May, reflecting stronger regional manufacturing activities and new orders.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 widened 19.5 sen to 941.5 sen per kilogramme (kg), while latex-in-bulk increased two sen to 761 sen per kg.

-- BERNAMA