Kuala Lumpur rubber prices rise on manufacturing support
SMR 20 gained six sen, while a dealer cited rain-related supply disruptions and stronger Chinese electric vehicle exports as supporting factors.
Rubber prices in Kuala Lumpur closed higher on Oct 2, with a dealer attributing the gains to sustained manufacturing activity in Europe and Asia. At 3 pm, Standard Malaysian Rubber 20 (SMR 20) was up six sen at 1,044.5 sen per kilogramme (kg). Bulk latex gained 3.5 sen to reach 749.5 sen per kg.
Heavy rainfall in major rubber-producing countries continued to disrupt supply, providing additional support for prices, the dealer told Bernama. She also cited favourable developments in Chinese electric vehicle exports, noting that BYD recorded a fifth consecutive monthly increase in global sales in September, rising 17 per cent on strong exports.
The dealer said manufacturing in Europe and Asia expanded last month as demand held up, partly supported by worldwide spending on artificial intelligence (AI). This was despite an energy-price shock linked to the US-Iran conflict that had kept inflation elevated.
However, she said cheaper crude oil, worries about a renewed military build-up in West Asia and divergent signals from regional rubber futures limited the market's gains.
