RUBBER MARKET ENDS LOWER AMID US TARIFF HIKE

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, April 3 (Bernama) -- The Malaysian rubber market closed lower again on Thursday in tandem with regional rubber futures markets in light of the greater-than-expected US tariff hike and sharp declines in crude oil prices, a dealer said.

At the time of writing, Brent crude oil dropped 3.44 per cent to US$72.34 per barrel.

“Nevertheless, further losses were capped by improved Chinese economic data, a weaker ringgit against the US dollar, expectations of more Chinese stimulus measures and restricted natural rubber (NR) supply from major NR producing countries from the onset of the wintering season,” she told Bernama.

Meanwhile, the dealer said Japanese rubber futures fell to their lowest since March 11 on Thursday after US President Donald Trump announced a sweeping set of tariffs, dampening the global demand outlook and escalating the trade war.

The 10 per cent baseline tariff from US will go into effect on April 5, while the higher tariffs will begin on April 9, increasing inflation and recession fears, she added.

“It was reported that the Chinese government is expected to roll out more stimulus measures to offset tariffs from the US,” the dealer said.

At 3pm, the Malaysian Rubber Board reported that the Standard Malaysian Rubber (SMR) 20 price decreased by 17.5 sen to 852.5 sen per kilogramme, while the price of latex in bulk was down by 5.0 sen to 666 sen per kilogramme.

-- BERNAMA