Kuala lumpur: The rubber market ended higher on Monday, supported by an uptrend in regional rubber futures markets, said a dealer. He noted that Japanese rubber futures traded within a narrow range, buoyed by signs of tightening supply despite the pressure from easing oil prices. Concerns over weather-related supply disruptions in Thailand further lifted market sentiment, with heavy rainfall across major rubber-producing regions, particularly northern and northeastern Thailand, disrupting tapping and reducing raw material output. Severe rain and flash floods are forecast from August 27 to 29.

According to BERNAMA News Agency, gains were further supported by a decline in Shanghai rubber inventories, strong demand from China's tyre and synthetic rubber industries, positive United States economic data, and expectations of further Chinese fiscal support. Rubber inventories at warehouses monitored by the Shanghai Futures Exchange fell by 3.3 percent from the previous week, as reported by the exchange on August 21. Additionally, the US services sector grew at its fastest pace in nearly two years, with the S and P Global Flash Services Purchasing Managers' Index (PMI) rising to 56.8 in August, marking its highest level since December 2024.

However, gains were limited by declining crude oil prices, a stronger ringgit against the US dollar, and continued geopolitical uncertainty in West Asia. At 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) increased by 10 sen to 957 sen per kilogram, while latex in bulk rose by 2 sen to 681.5 sen per kilogram. The Kuala Lumpur rubber market will be closed tomorrow in conjunction with the Maulidur Rasul public holiday and will resume operations the following day.