Kuala Lumpur Rubber Market Ends Higher On Firmer Regional Peers, Oil Prices

By K. Naveen Prabu

KUALA LUMPUR, Dec 17 (Bernama) -- The Kuala Lumpur rubber market closed higher today, supported by gains in regional rubber futures markets and crude oil prices, said a dealer.

She said Japanese rubber futures rose on firmer crude oil prices and a tightening supply outlook. 

Market sentiment was further buoyed by concerns over impending rubber supply declines in Thailand and Indonesia.

“Rubber supply growth is expected to remain weak next year due to limited new plantings in Thailand and other major producing countries in recent years.

“In addition, Indonesia's transition from rubber cultivation to higher value-added crops such as oil palm and durian is also expected to result in an unavoidable decline in production in the world's second-largest rubber-producing country,” she told Bernama. 

At the time of writing, Brent crude oil price increased 2.21 per cent to US$60.22 per barrel.

Nevertheless, the dealer said, further gains were capped by increased uncertainty over the United States (US) economy.

“US business activity growth slowed in December to the weakest pace since June, with new orders sliding for both manufacturers and service providers to cap a year of volatility and uncertainty for the American economy,” she said. 

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 gained 10.5 sen to 734 sen per kilogramme (kg) while latex-in-bulk rose by 2.5 sen to 579 sen per kg.

-- BERNAMA