Kuala Lumpur:The Kuala Lumpur rubber market concluded with mixed results for the second consecutive day, as SMR 20 saw a notable decrease in value, influenced by weaker regional rubber futures markets.

According to BERNAMA News Agency, a dealer noted that several factors impacted prices, including profit-taking, reduced Chinese rubber imports, declining crude oil prices, and rising U.S. inflation, which has sparked concerns about potential interest rate hikes.

The dealer added that the stronger ringgit against the U.S. dollar further pressured prices. Reports indicated a significant dip in Chinese demand, with natural and synthetic rubber imports dropping 20.8 percent year-on-year to 588,000 tonnes in September.

Additionally, the U.S. Consumer Price Index increased by 0.6 percent in September, marking a 3.7 percent rise year-on-year, which has fueled expectations of additional rate hikes by the Federal Reserve. Despite these pressures, the market avoided further losses due to limited raw material supply and potential support from the expansion of Chinese automakers' manufacturing facilities and supply chains across Europe.

By 3 pm, the Malaysian Rubber Board reported that the Standard Malaysian Rubber 20 (SMR 20) price had decreased by 23.5 sen to 1,026.5 sen per kilogram, while bulk latex saw a slight increase of two sen, reaching 783 sen per kilogram.