Kuala Lumpur: Standard Malaysian Rubber 20 (SMR 20) closed higher today amid concerns over natural rubber supply due to wet weather, said a dealer. The market sentiment was also influenced by China's efforts to boost its economy and the positive natural rubber projections released by the Association of Natural Rubber Producing Countries (ANRPC).

According to BERNAMA News Agency, the Thai meteorological agency has issued warnings about heavy rains that may lead to flash floods and overflows in Thailand from January 27-28, 2025. This weather concern is one of the factors contributing to the rise in SMR 20 prices. Additionally, ANRPC's December 2024 natural rubber statistical report indicated that global natural rubber production last year was estimated to increase by 2.8 percent to 14.29 million tonnes, while global demand for 2024 was expected to rise by 1.8 percent to 15.45 million tonnes.

Moreover, the dealer highlighted China's recent announcements as another key factor. China plans to inject hundreds of billions of yuan annually into shares from state-owned insurers in a coordinated effort to support its stock markets. Furthermore, China aims to grant foreign financial institutions the same treatment as domestic ones in offering new types of financial services within certain free trade zones.

The Malaysian Rubber Board reported that at 3 pm, the price of SMR 20 increased by 13 sen to 899.5 sen per kilogramme, while latex in bulk decreased by one sen to 679 sen per kilogramme.