Rubber Market Ends Mixed Amid Strengthening Ringgit, Uncertainty Over US Tariffs
By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, Feb 26 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Thursday amid a strengthening ringgit and uncertainty over US tariffs, despite the continued uptrend in Japanese rubber futures.
Japanese rubber futures gained for the seventh straight session on Thursday, rising to their highest level in a year on supply shortages as rubber enters its wintering season, and bolstered by a rally in Asian stocks and firm oil prices.
"It was reported that with rubber supply suppressed by the annual wintering season, and an expected increase in rubber demand, prices will hinge on winter inventory destocking and the operating rates of tire manufacturers," a dealer said.
Oil prices were rising as markets braced for the third round of US-Iran talks later in the day. At the time of writing, Brent crude oil price rose 0.04 per cent to US$70.8 per barrel.
The trader noted that the market sentiment was also dented by uncertainties over US tariffs amid a stronger ringgit against the greenback. However, further declines were limited by concerns over reduced rubber production coupled with the anticipation of higher natural rubber (NR) demand after the Lunar New Year.
At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 dropped three sen to 798 sen per kilogramme (kg), while latex-in-bulk was up by five sen to 609 sen per kg.
-- BERNAMA