Rubber Market Ends Lower

By K. Naveen Prabu

KUALA LUMPUR, July 3 (Bernama) -- The Malaysian rubber market ended lower today, in tandem with the downtrend in the regional rubber futures markets and losses in crude oil prices, a dealer said. 

She said the Japanese rubber futures market snapped its two-day winning streak, weighed down by lower oil prices.

“Oil prices fell on Thursday as investors turned cautious over the potential reinstatement of higher United States (US) tariffs, which could dampen fuel demand, while major producers were expected to announce an output hike,” she told Bernama. 

At the time of writing, Brent crude oil prices declined by 0.90 per cent to US$68.49 per barrel.

She said market sentiments were also dragged down by weaker US and Chinese economic data amid uncertainties surrounding the US trade tariff decision and the ongoing Middle East crisis.

“China’s Caixin/S&P Global Services Purchasing Managers’ Index (PMI) fell to 50.6 in June from 51.1 in May, marking the slowest expansion since September 2024, but it remained above the 50-point threshold that separates expansion from contraction.

“The US labour market likely slowed further in June with the unemployment rate expected to edge up to 4.3 per cent -- the highest in more than three and a half years -- as economic uncertainty stemming from the US President Donald Trump administration’s policies curbed hiring,” she said. 

Meanwhile, she noted that sales of China-made electric vehicles rose by 0.8 per cent year-on-year in June, snapping an eight-month losing streak.

At 3 pm, the Malaysian Rubber Board (MRB) reported that the price of Standard Malaysian Rubber 20 (SMR 20) dropped by 6.5 sen to 704.50 sen per kilogramme (kg), while latex in bulk fell by 5.5 sen to 576.00 sen per kg. 

-- BERNAMA