Tight Supply Concerns Drive Rubber Market To Close Higher

By Anas Abu Hassan

 

KUALA LUMPUR, Feb 25 (Bernama) -- The Kuala Lumpur rubber market ended higher today supported by concerns over tight supply due to wintering in natural rubber-producing regions coupled with gains in crude oil prices, said a dealer.

She said harvesting has reportedly ended in Vietnam and northeastern Thailand while production of natural rubber in southern Thailand has dropped significantly, further reducing the global supply amid steady demand.  

Nevertheless, further gains were capped by mixed advice from regional futures markets, weighed by concerns over United States (US) trade tariffs and global trade tensions, she told Bernama.

“Japanese rubber futures edged lower on Tuesday weighed down by concerns over US President Donald Trump's tariff plans, although losses were limited by prospects of tighter supply from top producer Thailand,” she added.

At the time of writing, Brent crude oil advanced by 0.27 per cent to US$74.98 per barrel.

As of 3 pm, the Malaysian Rubber Board reported that Standard Malaysian Rubber (SMR) 20 rose by 12 sen to 930.5 sen per kilogramme while latex in bulk gained six sen to 703.5 sen per kilogramme.

-- BERNAMA