Kuala lumpur: The Kuala Lumpur rubber market ended lower on Monday, tracking weaker regional rubber futures, with Japanese rubber futures extending losses for the fourth consecutive session, a dealer said. She noted that market sentiment was further weighed down by softer natural rubber demand from tire manufacturers in China.

According to BERNAMA News Agency, China's all-steel tyre capacity utilization declined to 65.71 per cent, down 0.23 percentage points week-on-week and 1.51 percentage points year-on-year. Meanwhile, natural rubber purchases by Chinese tyre manufacturers declined as higher raw material costs led many companies to maintain production controls.

She stated that expectations of a United States Federal Reserve rate hike, as well as concerns over the US economic outlook, also dampened sentiment. Expectations of a US Federal Reserve rate hike have increased following an acceleration in US consumer prices in August, supporting Goldman Sachs' forecast of a 25-basis-point hike in September, which could strengthen the US dollar and weigh on commodity prices.

She added that US consumer sentiment deteriorated in September, while inflation expectations increased, raising concerns over consumer spending and economic activity. Nevertheless, the decline was partially cushioned by sharply higher crude oil prices and concerns over potential supply disruptions in major Southeast Asian rubber-producing countries due to heavy rainfall amid the strengthening El Ni±o outlook.

At the time of writing, Brent crude rose 3.15 per cent to US$107.90 per barrel. At 3 pm, the price of SMR 20 fell 22 sen to 976.5 sen per kilogramme (kg), while latex in bulk decreased two sen to 710.5 sen per kg.