Rubber market trends diverge as Thai supply and Chinese synthetic rubber influence the market

⑴ On Friday, the Kuala Lumpur rubber market closed with mixed results, with varying performances in regional rubber futures markets driving the trend. According to traders, market expectations of improved rubber supply from Thailand, along with increased synthetic rubber production in China, have jointly contributed to this divergent pattern. ⑵ Market sentiment was also weighed down by a slowdown in Japanese automobile exports, which was related to shipping disruptions caused by conflicts in West Asia. Furthermore, the strengthening of the ringgit against the US dollar also put pressure on prices. ⑶ Traders also mentioned that concerns about a prolonged period of high interest rates persist due to ongoing inflationary pressures. However, the rise in international crude oil prices, together with positive financial results released by major tire and rubber-related companies, have limited the downside for rubber prices. ⑷ As of press time, Brent crude oil had risen 2.95% to $105.61 per barrel. At 3:00 pm, the price of Malaysian Standard Rubber SMR 20 increased by 2 sen to 889 sen per kilogram, while the price of latex in barrels dropped by 2.5 sen to 765 sen per kilogram.