Kuala lumpur: The Malaysian rubber market closed lower on Tuesday, following a downtrend observed in regional rubber futures and a stagnant ringgit against the US dollar, as reported by a dealer. Market sentiment was impacted by concerns surrounding the prolonged US government shutdown, combined with broader geopolitical and economic uncertainties. Additionally, there was an absence of Chinese buyers due to the National Day holiday.

According to BERNAMA News Agency, the World Bank recently increased its 2025 growth forecast for China to 4.8 percent and adjusted its outlook positively for much of the region. Despite this, the World Bank warned that momentum might slow in the coming year because of subdued consumer and business confidence, along with weak new export orders.

The dealer noted that although the market faced downward pressure, further losses were limited by stable crude oil prices and China's improved economic outlook. Traders are also concerned about a potential natural rubber supply shortage due to the rainy season in major producing countries.

At 3 pm, the Malaysian Rubber Board indicated that the price of Standard Malaysian Rubber 20 (SMR 20) fell by seven sen to 730.5 sen per kilogram, while latex-in-bulk decreased by one sen to 572 sen per kilogram.