malaysiang
KUALA LUMPUR: The Kuala Lumpur rubber market ended lower on Monday, following the downtrend in the regional rubber futures market and the strengthening of the ringgit against the United States (US) dollar, a dealer said.
According to BERNAMA News Agency, the market also reacted negatively to the International Monetary Fund’s (IMF) warning of rising risks to Asia’s economy, weak US data, and the ongoing Middle East conflict. The IMF warned that risks to Asia’s economy have increased from escalating trade tensions, China’s property sector issues, and potential market turbulence.
It was reported that US manufacturing activity slumped to a 15-month low in October, with factories facing higher input prices. The Institute for Supply Management (ISM) noted that the US manufacturing purchasing managers’ index (PMI) fell to 46.5 last month, the lowest level since July 2023, down from 47.2 in September.
The dealer mentioned that losses were mitigated by gains in crude oil prices and supply disruptions due to adverse
weather conditions in Thailand. Oil prices rose sharply after the Organization of the Petroleum Exporting Countries Plus (OPEC+) delayed a planned output hike in December by at least a month, citing pressure on prices from weak demand. OPEC and its allies, including Russia, announced on Sunday a delay in the planned output increase of 180,000 barrels per day.
At 5 pm, Brent crude oil prices increased by 2.37 percent to US$74.83 per barrel. The Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) declined by eight sen to 854.5 sen per kilogramme, while latex in bulk fell by six sen to 720.5 per kg. By 5 pm, SMR 20 stood at 861.5 sen per kg, and latex in bulk was at 715.5 sen per kg.
