Rubber Market Ends Lower Amid Weaker Regional Futures

Kuala lumpur: The Kuala Lumpur rubber market ended lower on Tuesday, weighed down by weaker regional rubber futures, a dealer said. He noted that Japanese rubber futures fell for the fifth straight session, impacted by softer tyre demand in China and a technical correction after prices failed to break recent highs, despite rising oil prices.

According to BERNAMA News Agency, market sentiment was further pressured by mixed Chinese economic data, expectations of a United States Federal Reserve rate hike, and renewed geopolitical tensions in West Asia. China's economy continued to contend with weak domestic demand in August, with the prolonged property sector downturn affecting economic growth. Meanwhile, China's industrial output rose 5.2 percent year-on-year in August, an increase from 4.5 percent in July and exceeding expectations.

Losses in the rubber market were limited by gains in crude oil prices and concerns over potential natural rubber supply disruptions due to the strengthening El Ni±o outlook. At 3 pm, the price of SMR 20 fell 9.5 sen to 967 sen per kilogram, while latex in bulk decreased 0.5 sen to 710 sen per kilogram.

The rubber market will be closed on Wednesday, Sept 16, in conjunction with Malaysia Day, and will resume operations the following day.