Rubber Market Lower Amid US Trade Tariff Concerns
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, Feb 17 (Bernama) -- The Kuala Lumpur rubber market closed lower on Monday, pressured by weaker signals from regional futures markets amid ongoing concerns over increased United States (US) trade tariffs, said a dealer.
The dealer said US President Donald Trump had announced levies on automobiles to be implemented as early as April 2 this year.
Additionally, US retail sales dropped more than expected, falling by 0.9 per cent in January due to a winter freeze.
The US administration is also expanding its focus beyond tariffs and non-tariff barriers to include an examination of currency manipulation, she said.
The dealer also noted that market sentiment was also pressured by a stronger ringgit against the US dollar and weak US economic data.
“Nevertheless, further losses were capped by steady oil prices and optimism for more stimulus from China amid the onset of the wintering season, coupled with extreme weather in major rubber-producing countries,” she told Bernama.
She also said oil prices remained stable on Monday as investors closely monitored developments on a potential Russia-Ukraine peace deal, which could ease sanctions disrupting global supply chains.
At 4.55 pm, Brent crude oil prices rose by 0.41 per cent to US$75.04 per barrel.
The Malaysian Rubber Board reported that at 3 pm, SMR 20 was down by 6.0 sen to 915 sen per kilogramme (kg), while latex in bulk inched down by 1.5 sen to 685.5 sen per kg.
-- BERNAMA