KUALA LUMPUR RUBBER MARKET STAYS MIXED, TRACKING REGIONAL FUTURES

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, March 17 (Bernama) -- The Kuala Lumpur rubber market extended its mixed performance for the third consecutive trading day on Tuesday, tracking regional rubber futures, a trader said.

He said several Asian butadiene rubber plants have cut output or shut for maintenance due to feedstock shortages, which could drive substitution to natural rubber and potentially support its demand.

Chinese and Singapore rubber prices remained supported by tight supply and higher oil prices, but Japanese rubber futures slipped in a thinly traded market today ahead of a long weekend in Japan.

The trader noted that market sentiment remained cautious amid concerns over the inflationary impact of the ongoing West Asia conflict.

“The conflict involving the United States, Israel and Iran has entered its third week, raising fears of broader disruptions to global energy supplies as the crisis continues to affect key oil shipping routes and markets.

“Oil prices rose over two per cent early Tuesday, reversing previous losses amid supply concerns as the Strait of Hormuz remained mostly closed and US allies declined to send warships,” he told Bernama

However, further losses were limited by gains in crude oil prices, positive US economic data, and ongoing worries over tighter raw material supply as major producers entered the wintering season.

He also noted Federal Reserve data showing that US manufacturing output rose 0.2 per cent in February, following an upwardly revised 0.8 per cent gain in January.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 eased two sen to 780 sen per kilogramme (kg) while latex in bulk gained five sen to 675 sen per kg.

-- BERNAMA