Rubber Market Ends Lower On Weaker Oil Prices

By K. Naveen Prabu

KUALA LUMPUR, July 15 (Bernama) -- The Malaysian rubber market finished lower today, influenced by declining crude oil prices, as markets weighed United States (US) President Donald Trump’s 50-day ultimatum for Russia to end the Ukraine war, along with threats of sanctions on buyers of Russian oil, a dealer said.

At the time of writing, Brent crude oil prices had fallen by 0.69 per cent to US$68.73 per barrel.

The dealer said that market sentiment was also dampened by heightened uncertainty over US tariffs and ongoing geopolitical tensions.

“Trump announced a slew of steep trade tariffs against major economies in the past week, most recently imposing 30 per cent tariffs on Mexico and the European Union,” she told Bernama.

Nevertheless, she noted that further losses in the rubber market were capped by a string of positive Chinese economic data. 

“It was reported that gross domestic product data showed the Chinese economy grew more than expected in the second quarter, rising 5.2 per cent year-on-year and exceeding the 5.1 per cent forecast.

“Meanwhile, growth for the first six months of 2025 stood at 5.3 per cent, remaining above Beijing's five per cent annual target,” she added.

At 3 pm, the Malaysian Rubber Board (MRB) reported that the price of Standard Malaysian Rubber 20 (SMR 20) declined by 1.5 sen to 716.50 sen per kilogramme (kg), while latex in bulk remained unchanged at 564.00 sen per kg.

-- BERNAMA