SMR 20 Hits Nine-year High On Tight Supply, EV Demand
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, June 16 (Bernama) -- The Kuala Lumpur rubber market closed higher on Tuesday, leading to Standard Malaysian Rubber 20 (SMR 20) reaching its highest level in the past nine years, said a dealer.
The SMR 20 price recorded on Feb 22, 2017 was 20 943.00 sen per kilogramme (kg).
At 3 pm today, the price of SMR 20 jumped 11.0 sen to 947.50 sen/kg, while latex-in-bulk increased by six sen to 792.0 sen/kg.
"The market reached a new high for 2026, supported by gains in regional rubber futures markets on concerns over tight natural rubber supply, continued growth in global electric vehicle (EV) demand and resilient US manufacturing activity," he told Bernama.
The dealer said global EV registrations rose three per cent year-on-year to 1.8 million units in May, while the US manufacturing output remained resilient, supported by continued investment in artificial intelligence-related industries.
He noted that further gains were capped by declining crude oil prices, mixed Chinese economic data, and investor caution ahead of the US Federal Reserve's policy meeting this week.
The dealer noted that oil prices declined after reaching three-month lows, as markets awaited details regarding the US-Iran agreement and the reopening of the Strait of Hormuz.
-- BERNAMA