Kuala lumpur: The Malaysian rubber market ended lower today due to decreases in benchmark crude oil prices and mixed signals from regional futures, a dealer said. Sentiment in the market was also affected by a reduction in rubber demand as upstream processors cut down on inventories following the delay in the European Union Deforestation Regulation (EUDR).

According to BERNAMA News Agency, further declines were limited by concerns over potential supply disruptions caused by heavy rains in major rubber-producing countries. Additionally, recent positive trade developments between the United States and China, along with rising optimism about potential interest rate cuts in the US, contributed to improved market sentiment.

The dealer noted that oil prices slipped as fears of oversupply overshadowed potential sanctions on Russian exports. Furthermore, the demand for rubber might ease as processors continue to reduce their stock levels, with the EUDR delay allowing tyre manufacturers to defer compliant purchases, thereby affecting premiums in the market.

As of 3 pm, the Malaysian Rubber Board (MRB) reported that the price of Standard Malaysian Rubber 20 (SMR 20) decreased by 3.5 sen to 724.00 sen per kilogram, while latex-in-bulk prices fell by two sen to 570 sen per kilogram.