Rubber Market Ends Higher On Steady Crude Oil, Firm Rubber Demand

By K. Naveen Prabu

KUALA LUMPUR, Feb 10 (Bernama) -- The Kuala Lumpur rubber market ended higher today, supported by steady crude oil prices, said a dealer.

He said oil prices were steady as traders assessed the risk of supply disruptions after the United States issued guidance to vessels transiting the Strait of Hormuz, keeping attention squarely on tensions between Washington and Tehran.

At the time of writing, Brent crude oil was up 0.43 per cent to US$69.34 a barrel.

The dealer added that market sentiment was further lifted by steady demand for rubber. 

“Demand from factories outside China, which are generally willing to pay higher prices for raw materials, has helped support natural rubber costs,” he told Bernama. 

However, the dealer said further gains were capped by expectations of softer tyre demand ahead of the Lunar New Year.

“Rubber prices are expected to face pressure this week and next as tyre manufacturers reduce demand while shutting down operations ahead of the Lunar New Year,” he said.

At 3 pm, the Standard Malaysian Rubber (SMR) 20 rose 6.5 sen to 764.50 sen per kilogramme (kg), while latex-in-bulk increased by two sen to 578.5 sen per kg.

-- BERNAMA