Rubber Market Ends Mixed, Tracking Weaker Regional Futures

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, June 10 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Wednesday, tracking weaker regional rubber futures markets amid concerns over soft demand from China's automotive sector, a dealer said.

She said market sentiment was also influenced by expectations of higher natural rubber production in major producing countries.

“Market sentiment was further weighed by declining crude oil prices, mounting inflationary pressure and a firmer ringgit against the US dollar.

“However, downside pressure was partially cushioned by signs of inventory rebuilding in the United States and continued investment expansion in the global tyre manufacturing sector,” she told Bernama.

She said Japanese rubber futures fell today for a third consecutive session, pressured by seasonally weak demand, softer automotive sales, and expectations of increased rubber tapping in producing countries.

Additionally, she said oil prices traded slightly lower on Wednesday after paring early gains, as fresh US-Iran strikes reignited supply concerns and cast doubt on a fragile ceasefire.

At the time of writing, Brent crude fell 0.30 per cent to US$91.18 per barrel.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 fell by 10.5 sen to 911.0 sen per kilogramme (kg), while latex-in-bulk increased by 3.5 sen to 768.0 sen per kg.

-- BERNAMA