Rubber Market Ends Sharply Higher, Hits New 2026 High Amid Tight Supply

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, May 13 (Bernama) -- The Kuala Lumpur rubber market ended sharply higher on Wednesday, reaching a new high for 2026, supported by the persistent concerns over tight natural rubber supply across major producing countries and a decline in local rubber production, a dealer said.

She said that Thailand’s meteorological agency warned of heavy rainfall and possible flash floods in southern Thailand from May 16 to 18, raising concerns over disruptions to rubber tapping activities.

“Meanwhile, Malaysia’s natural rubber production fell 8.2 per cent month-on-month and 29.3 per cent year-on-year in March 2026, indicating continued supply tightness in the market,” she told Bernama.

The dealer added that market sentiment was further lifted by rising global demand for electric vehicles (EVs) and optimism about the upcoming United States (US)-China summit. 

However, gains were partially capped by softer crude oil prices, a stronger ringgit against the US dollar, as well as growing concerns over global inflation and higher interest rates.

At today’s opening, the ringgit inched up to 3.9315/9370 against the greenback, compared with Tuesday’s close of 3.9320/9360.

“Oil prices edged lower as traders awaited developments around the fragile Middle East ceasefire and braced for a high-stakes summit in China between US President Donald Trump and President Xi Jinping,” the dealer said.

At the time of writing, Brent crude declined 0.79 per cent to US$106.90 per barrel.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 rose by 30.5 sen to 910 sen per kilogramme (kg), while latex-in-bulk also rose 10 sen to 770.5 sen per kg.

-- BERNAMA