Kuala Lumpur: The local rubber market is expected to stay muted with a sideways trend leaning towards further weakness. Industry expert Denis Low highlighted the ongoing global economic uncertainties stemming from the unresolved United States tariffs, which remain on a 90-day pause. He indicated that the significant impact of earlier tariffs has not yet been resolved, creating a challenging economic situation worldwide. This unresolved issue is anticipated to slow down various sectors across the globe, including the rubber industry.

According to BERNAMA News Agency, Denis Low expressed hope for a more regimented and regulated tariff policy led by the US and China, particularly for commodity producers. The Statistics Department Malaysia (DOSM) recently reported a significant decrease in natural rubber production, falling by 31.7 percent to 35,901 tonnes in April 2025 from 52,531 tonnes in March 2025. This decline reflects weaker foreign demand for Malaysian rubber.

Another dealer noted that rubber prices are expected to continue following regional rubber futures markets, the strength of the ringgit against the US dollar, and benchmark crude oil prices. Market participants are closely monitoring key global economic data, developments in US trade negotiations, and progress in US-China trade talks. Additionally, attention remains on updates related to geopolitical tensions in the Middle East.

For the week just ended, the Kuala Lumpur rubber market exhibited mixed trading. On a week-to-week basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 11.25 sen to 703 sen per kilogramme, while latex in bulk decreased by 20.13 sen to 587 sen per kilogramme.