Rubber Market Supported By China's Positive Economic Outlook
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Dec 27 (Bernama) -- The local rubber market closed mixed on Friday, supported by the performance of its regional peers in response to the positive outlook for China's economy, a dealer said.
She said market sentiment was also aided by natural rubber supply disruptions due to adverse weather conditions in Thailand and Malaysia.
“Nonetheless, further gains were capped by quiet trading due to year-end holidays, coupled with ongoing geopolitical conflicts in the Middle East,” she told Bernama.
On Tuesday, the World Bank raised its forecast for China’s economic growth, projecting gross domestic product growth of 4.9 per cent for this year and 4.5 per cent in 2025.
The dealer also noted that rubber output in Thailand was expected to fall sharply in December as heavy rains hit 11 provinces in the southern region, a key rubber plantation area that accounts for 80 per cent of the country's total annual production of 4.8 million tonnes.
According to the Malaysian Rubber Board, the price of Standard Malaysian Rubber (SMR) 20 rose by 4.5 sen to 875.5 sen per kilogramme (kg), while latex in bulk decreased by four sen to 699.5 sen per kg.
At 5 pm, the price of SMR 20 was 876.5 sen per kg, while latex in bulk was at 696.0 sen per kg.
-- BERNAMA