Kuala lumpur: The Kuala Lumpur rubber market closed lower, influenced by weaker demand from China and disappointing economic data from the United States.

According to BERNAMA News Agency, a dealer noted that Chinese tyre manufacturers are struggling with reduced new orders and high inventory levels, leading some factories to initiate maintenance shutdowns which have impacted near-term rubber demand. In the United States, services activity decreased to 54.0 in June, though employment showed some recovery after a period of contraction.

The dealer further explained that market sentiment was affected by a stronger ringgit against the US dollar and ongoing geopolitical tensions in West Asia. At the start of trading, the local currency appreciated to 4.0815/0880 against the greenback, up from 4.0825/0875 at the previous close.

Despite these challenges, the dealer mentioned that losses were limited by positive movements in regional rubber futures markets, higher crude oil prices, concerns over potential supply constraints due to forecasted heavy rainfall in Thailand, a major rubber producer, and increased vehicle sales in the United Kingdom.

Oil prices experienced an uptick due to renewed security concerns in the Strait of Hormuz, surpassing expectations of increased global crude supplies. The Thai Meteorological Department forecasted heavy rainfall from July 5 to July 11, 2026, which could impact rubber production in Thailand.

As of the latest report, Brent crude oil prices rose by 1.36 percent to US$72.97 per barrel. By 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) had decreased by one sen to 886 sen per kg, while latex-in-bulk dropped by five sen to 736 sen per kg.