Rubber Market Ends Marginally Higher Amid China Stimulus, US Fed Rate Cut Optimism

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Sept 17 (Bernama) -- The Malaysian rubber market ended slightly higher on Wednesday, supported by the Chinese economic stimulus and optimism surrounding a potential rate cut by the United States Federal Reserve (Fed), a dealer said.

She said China unveiled new measures to boost services consumption, including opening sectors such as internet and culture, as well as supporting international sports events, to spur growth.

"China's Ministry of Industry and Information Technology, along with seven other government agencies, announced that China is targeting 32.3 million in vehicle sales in 2025 to support stable growth in the auto sector.

"Nevertheless, further gains in the rubber market were capped by weakness in regional rubber futures markets, a stronger ringgit against the US dollar, losses in crude oil prices and uncertainty in the auto sector," the dealer told Bernama.

She noted that Japanese rubber futures extended losses, pressured by a firmer yen and a cautious auto sector outlook.  

Meanwhile, Thailand's meteorological agency warned of heavy rain and accumulations from Sept 17-20, 2025. The continuous rain in Thailand, the world’s largest natural rubber producer, could lead to short-term bullish sentiment in the rubber market, as traders anticipate a tighter supply from Thailand.

The dealer also said that oil prices dipped slightly on Wednesday after a previous 1.0 per cent gain, supported by geopolitical tensions and anticipation of a potential interest rate cut by the US Fed.

At the time of writing, the Brent crude oil inched down 0.54 per cent to US$68.08 per barrel.

As at 3 pm, the Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) rose by 4.0 sen to 741.0 sen per kilogramme (kg), while latex-in-bulk inched up by 1.0 sen to 576.5 sen per kg.

-- BERNAMA