Kuala lumpur: The Kuala Lumpur rubber market continued its mixed performance for the third consecutive trading day, influenced by regional rubber futures, a trader revealed.

According to BERNAMA News Agency, several Asian butadiene rubber plants have reduced output or shut down for maintenance due to feedstock shortages. This situation could drive a shift towards natural rubber, potentially boosting its demand.

Chinese and Singapore rubber prices remained steady due to tight supply and elevated oil prices. However, Japanese rubber futures experienced a decline in a thinly traded market, with a long weekend approaching in Japan. The trader pointed out that market sentiment stayed cautious, with concerns over the inflationary impact of the ongoing West Asia conflict.

The conflict involving the United States, Israel, and Iran has entered its third week, raising fears of broader disruptions to global energy supplies as the crisis continues to affect key oil shipping routes and markets. Oil prices rose over two percent early Tuesday, reversing previous losses. This increase was driven by supply concerns as the Strait of Hormuz remained mostly closed, and US allies declined to send warships.

Further losses in the rubber market were limited by gains in crude oil prices, positive US economic data, and ongoing worries over tighter raw material supply as major producers entered the wintering season. Additionally, Federal Reserve data showed that US manufacturing output rose 0.2 percent in February, following an upwardly revised 0.8 percent gain in January.

At 3 pm, the price of Standard Malaysian Rubber (SMR) 20 eased by two sen to 780 sen per kilogramme, while latex in bulk gained five sen to 675 sen per kilogramme.