RUBBER MARKET ENDS MIXED AS WEST ASIA CONFLICT DRIVES PROFIT-TAKING

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, March 19 (Bernama) -- The Kuala Lumpur rubber market ended mixed on Thursday, as the West Asia conflict influenced crude oil prices, prompting profit-taking activities, a trader said.

Rubber prices are often linked to oil prices because natural rubber competes with synthetic rubber, which is derived from petroleum, so higher oil prices tend to support rubber prices.

The trader told Bernama that market sentiment, however, remained cautious due to rising inflation uncertainty, as surging oil prices and escalating tensions in West Asia continued to cloud the outlook.

"Brent oil prices rose on Thursday after Iran attacked several energy facilities across West Asia following a strike on its South Pars gas field, a major escalation in Tehran's war with the United States and Israel," she said.

At the time of writing, Brent crude price had risen 7.58 per cent to US$115.50 per barrel.

The trader added that the market is also affected by supply pressures, which are anticipated to ease as the peak rubber harvesting season in April and May approaches.

"However, further losses were limited by ongoing concerns over tightening natural rubber supply," she said.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 edged down three sen to 758.5 sen per kilogramme (kg), while latex-in-bulk was up by one sen to 677 sen per kg.

The Kuala Lumpur rubber market will be closed from Friday (March 20) to Monday (March 23) for the Hari Raya Aidilfitri celebration and will commence operations on Tuesday (March 24).

-- BERNAMA