Kuala Lumpur: The Malaysian rubber market concluded lower, mirroring weaker performances in regional rubber futures and influenced by soft economic data from China, a dealer reported. The market’s sentiment was adversely impacted by global economic concerns, particularly deteriorating trade relations between China and the United States, uncertainties surrounding US trade tariffs, and rising geopolitical tensions in Europe and the Middle East.

According to BERNAMA News Agency, Japanese rubber prices reached their lowest point in over a year, pressured by weak demand from China, the top consumer, and expectations of increased supply from seasonal tapping. China’s manufacturing sector also saw an unexpected contraction in May, with the Caixin Manufacturing Purchasing Managers’ Index (PMI) dropping to 48.3 from 50.4, while the official manufacturing PMI remained in contraction at 49.5. These figures underscore the economic impact of US tariffs on China, further strained by US President Donald Trump’s accusations against China of breaking a trade deal, which China denied.

At 3 pm, the Malaysian Rubber Board reported a decrease in the price of Standard Malaysian Rubber 20 (SMR 20) by 12 sen to 686.5 sen per kilogram, while latex in bulk fell by 8.0 sen to 612.5 sen per kilogram. Despite these declines, further losses were limited by steady crude oil prices and rising optimism for potential Chinese economic stimulus.