Rubber Market Closes Lower In Line With Regional Rubber Futures

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, June 3 (Bernama) -- The Malaysian rubber market ended lower due to weaker cues from the regional rubber futures markets and soft Chinese economic data, a dealer said. 

He said the market sentiment was affected by concerns over global economic outlook caused by the deteriorating China-United States (US) trade relations, uncertainty over US trade tariffs and heightened geopolitical tensions in Europe and the Middle East.

“Nevertheless, further losses were capped by steady benchmark crude oil prices amid rising optimism for more Chinese stimulus,” he told Bernama. 

He noted that Japanese rubber prices fell to their lowest level in over a year today, pressured by weak demand from top consumer China and expectations of higher supply from seasonal tapping. 

“At the same time, China’s manufacturing sector unexpectedly shrank in May, with the Caixin Manufacturing Purchasing Managers' Index (PMI) dropping to 48.3 from 50.4.

“Meanwhile, China's official manufacturing PMI remained in contraction phase at 49.5, underscoring the economic impact of US tariffs on China,” he said, adding that the US-China trade relations were strained after US President Donald Trump accused China of breaking a trade deal, which the latter denied on Monday.  

At 3 pm, the Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) was down by 12 sen to 686.5 sen per kilogramme (kg) and latex in bulk decreased by 8.0 sen to 612.5 sen per kg.

-- BERNAMA