Rubber Market Sees Gains Amid Supply Concerns and Chinese Manufacturing Growth

Kuala Lumpur:The rubber market in Kuala Lumpur ended on a higher note, influenced by gains in regional rubber futures markets and concerns over potential supply disruptions.

According to BERNAMA News Agency, adverse weather conditions in Thailand are causing these supply concerns, with heavy rain and flooding affecting 26 provinces since September 16. Severe thunderstorms are forecasted for October 4-5, which could further disrupt rubber tapping activities.

Additionally, the market was bolstered by improved manufacturing activity in China, as indicated by both the official and private-sector manufacturing purchasing managers' indexes (PMI), which showed a return to expansion in September.

However, these gains were somewhat limited by several factors, including a stronger ringgit against the US dollar, decreased US consumer confidence, a drop in US job openings, and increasing expectations of US interest rate hikes.

At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) rose 44.5 sen to 1,055 sen per kilogramme (kg), while the price of bulk latex increased by 2.5 sen to 740 sen per kg.