Rubber Market Ends Mixed Amid Regional Futures Gains, Supply Disruption Concerns

By Danni Haizal Danial Donald

KUALA LUMPUR, Nov 25 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Monday, supported by an upward momentum in regional rubber futures markets amid natural rubber supply disruption concerns, said a dealer.

Nevertheless, further gains were capped by losses in benchmark crude oil prices as concerns for the ongoing geopolitics in Eastern Europe and the Middle East still lingered, the dealer told Bernama.

“Oil prices retreated on Monday following six per cent gains last week, but remained near two-week highs as geopolitical tensions grew between Western powers and major oil producers Russia and Iran, raising risks of supply disruption,” he said.

The dealer highlighted that Thailand’s meteorological agency has issued a warning of heavy rains in the South, which could lead to flash floods and overflow, particularly in foothill areas, near waterways, and in lowlands, with the risk lasting until November 30.

This extreme weather could disrupt the natural rubber supply, as the South is a key production area, potentially impacting both local and global markets.

At 5pm, Brent crude oil prices decreased by 0.67 per cent to US$74.73 per barrel. 

He added that market sentiment was buoyed by Donald Trump’s nomination of prominent investor Scott Bessent as Treasury Secretary, with Bessent seen holding a much more moderate view on trade tariffs. 

According to the Malaysian Rubber Board, the price of Standard Malaysian Rubber 20 (SMR 20) rose by 4.5 sen to 846.5 sen per kilogramme (kg), while latex in bulk was down by one sen to 683 sen per kg.

At 5 pm, SMR 20 stood at 847 sen per kg and latex in bulk was at 682.5 sen per kg.

-- BERNAMA