RUBBER MARKET ENDS THE WEEK HIGHER OVER SUPPLY CONCERNS

By Danni Haizal Danial Donald

KUALA LUMPUR, Nov 21 (Bernama) -- The Kuala Lumpur rubber market closed the week higher on Friday, driven by ongoing concern over rubber supply due to rainy weather in major rubber producers amid mixed advice from regional rubber futures markets, said a dealer.

He told Bernama that market sentiment was also lifted by positive United States economic data and strong demand for rubber-made tyres from the Chinese automotive market.

“Nevertheless, further gains were capped by a stronger ringgit against the US dollar and declining benchmark crude oil prices as uncertainties over US interest rate cuts prevailed.

Quoting the Thailand Meteorological Agency, the dealer stated that the agency warned of heavy rains and accumulations that may cause flash floods and overflows from Nov 20-22, 2025.

Meanwhile, regarding regional markets, he said that Japanese rubber futures edged higher on Friday, on track for a third straight weekly gain after hitting their highest since early April, as Thai heavy rain warnings stoked supply concerns.

“It was also reported that strong domestic demand and exports of automobiles in China have boosted the demand for rubber-made tyres, while the spot supply of rubber may tighten, boosting prices of raw material,” he said.

The dealer added that the US economy created more jobs than expected in September; however, the jobless rate unexpectedly increased, adding further uncertainty ahead of the US Federal Reserve’s December policy meeting.

At 3 pm, the Malaysian Rubber Board said the price of Standard Malaysian Rubber (SMR) 20 rose 4.5 sen to 730.5 sen per kilogramme, while latex-in-bulk inched up 1.5 sen to 577 per kilogramme.

-- BERNAMA