Rubber Market Ends Mixed Tracing Regional Rubber Futures

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, April 13 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Monday tracing the regional rubber futures, a dealer said.

She said the tapping in China's rubber-producing province of Hainan was delayed due to a heat wave, providing short-term support to rubber prices.

However, Japanese rubber futures fell on Monday on expectation of an increase in supply, while softening physical prices also weighed on the market.

The weaker Chinese car sales as the United States-Iran ceasefire talk showed no progress also affecting sentiment in the market.

"The collapse of US-Iran peace talks in Islamabad left a fragile ceasefire hanging in the balance and no plan to release West Asia energy exports, dampening investors' risk appetite.

"The China Passenger Car Association reported that car sales in China tumbled more than 17 per cent in the first quarter from a year earlier after the country scaled back the purchase tax exemption on new energy vehicles," she told Bernama.

However, the dealer said further losses were capped by gains in crude oil prices and declines in domestic natural rubber production.

“Oil prices rose sharply on Monday, surging above US$100 a barrel after US President Donald Trump said the US Navy will begin blockading the Strait of Hormuz," she added.

At the time of writing, Brent crude rose 7.96 per cent to US$102.80 per barrel.

At 3 pm, Standard Malaysian Rubber (SMR) 20 declined by nine sen to 814 sen per kilogramme (kg), while latex in bulk increased by five sen to 759.5 sen per kg.

-- BERNAMA