RUBBER MARKET CLOSES HIGHER ON TIGHTENING SUPPLY OUTLOOK

KUALA LUMPUR, March 4 (Bernama) -- The local rubber market closed higher on Tuesday, supported by the tightening natural rubber (NR) supply due to the wintering season, according to a dealer.

The dealer noted that market sentiment was also lifted by growing optimism for additional Chinese stimulus measures ahead of the top policymakers' meeting in China next week.

“Nevertheless, further gains were capped by weaker advice from regional rubber futures markets and losses in benchmark crude oil prices, as traders' concerns over an escalating global trade war weighed on sentiment. Japanese rubber futures nudged lower on Tuesday as new US tariffs on Canada, Mexico, and top rubber consumer China are set to take effect within hours, outweighing a tightening supply outlook,” she told Bernama.

She noted that NR supply in southern Thailand had reportedly shrunk, pushing global NR supply to a seasonal low as rubber crops undergo a period of reduced production from February to May. “It was reported that Chinese policymakers are expected to announce economic targets and fresh policy support next week at the high profile gathering in Beijing. Investors will also be watching for signs of further support for the struggling property sector and heavily indebted local developers (in China),” she said.

The Malaysian Rubber Board reported that Standard Malaysian Rubber (SMR) 20 had risen by four sen to 927.50 sen per kilogramme as of 3 pm, while latex in bulk edged up one sen to 717.50 sen per kilogramme.

-- BERNAMA