Kuala Lumpur: The Kuala Lumpur rubber market experienced an increase today, bolstered by the upward trend in regional rubber futures markets, according to a dealer.

According to BERNAMA News Agency, the Shanghai rubber futures saw a rise following the United States’ announcement of a gradual increase in trade tariffs set for 2025. This development is reportedly part of a plan being prepared by US President-elect Donald Trump’s team, which involves a monthly tariff hike ranging from two per cent to five per cent. The strategy aims to provide Washington with more leverage in trade negotiations while preventing sudden inflation spikes due to the duties.

Additionally, market optimism has been supported by the potential for further stimulus measures from China amid ongoing wet weather conditions affecting major natural rubber (NR) producers. This has provided some support to rubber prices, the dealer noted.

Despite these positive factors, further gains were limited by losses in benchmark crude oil prices and a slightly stronger ringgit against the US dollar. Traders also observed NR statistics from the Department of Statistics Malaysia, which reported a 0.2 per cent increase in NR production in November 2024, amounting to 38,481 tonnes compared to 38,400 tonnes in October 2024.

As of 3 pm, the Malaysian Rubber Board reported that the Standard Malaysian Rubber 20 increased by 10.0 sen per kilogramme (kg) to 883.50 sen per kg from Monday’s 873.50 sen per kg. Meanwhile, latex in bulk saw a decline of 2.0 sen per kg to 672.00 sen per kg from the previous 674.00 sen per kg.