SMR 20 Ends Higher On Concerns Over Natural Rubber Supply

By K.Naveen Prabu

KUALA LUMPUR, July 8 (Bernama) -- Standard Malaysian Rubber 20 (SMR 20) closed higher today over concerns about natural rubber (NR) supply and optimism over increased automobile demand, a dealer said.

He said Japanese rubber futures rose today, buoyed by optimism over rising automobile demand after China’s largest electric vehicle (EV) maker, BYD Auto Co Ltd, announced plans to ramp up EV assembly in Brazil.

“BYD is poised to start assembling electric vehicles at a new factory in Brazil as early as this month, a top executive said, reducing imports as tariffs begin to rise in its largest foreign market,” he told Bernama. 

The dealer also said Thailand’s meteorological agency warned of heavy rains and accumulations from July 10 - 12.

Additionally, he said market sentiment was also lifted as the United States (US) extended its tariff deadline.

“US President Donald Trump signed an executive order extending the deadline for his reciprocal trade tariffs to Aug 1 from July 9, while remaining open to further talks,” he said. 

Nevertheless, the dealer said further gains were capped by declines in crude oil prices as uncertainties over US tariffs persisted. 

“Oil prices retreated on Tuesday after gaining nearly two per cent in the previous session, as investors assessed new developments on US tariffs and a larger-than-expected OPEC+ output hike for August,” he said.

At 3 pm, the Malaysian Rubber Board (MRB) reported that the price of Standard Malaysian Rubber 20 (SMR 20) rose by 6.5 sen to 706.50 sen per kilogramme (kg), while latex in bulk remained unchanged at 565.50 sen per kg.

-- BERNAMA