Malaysian rubber prices closed lower today due to negative external sentiment in the US and China, dealers said.
A dealer said rubber prices dropped sharply today on negative sentiments brought by falling equity prices resulting from weak US data and a weak physical rubber market, with tyre grades changing hands at lower prices.
“The International Rubber Consortium (IRCo) in its weekly report noted market uncertainty, in which global macroeconomic cues are trumping rubber fundamentals, and that prices can move in any direction in the next few months,” he said.
He said Chinese traders have reportedly turned to cheaper rubber stocks at the bonded warehouses in Qingdao, where stockplies are at a three-year high of around 350,000 tonnes.
On the local front, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 fell 20 sen to 790 sen a kg at noon today from Wednesday’s 810 sen a kg, while latex-in-bulk lost 5.5 sen to 600 sen a kg from 605.5 sen a kg yesterday.
The unofficial closing price for tyre-grade SMR 20 decreased 15 sen to 792 sen a kg from 807 sen a kg while latex-in-bulk slipped seven sen to 597 sen a kg from 604 sen a kg previously.– Bernama
