Kuala Lumpur:The Kuala Lumpur rubber market saw a significant increase on Friday, with Standard Malaysian Rubber 20 (SMR 20) climbing 9.5 sen to 1,061 sen per kilogram, marking its highest level since May 9, 2012, according to a dealer.

According to BERNAMA News Agency, the rise in prices was influenced by stronger regional rubber futures, driven by concerns about supply constraints caused by weather disruptions in major producing countries.

Persistent heavy rainfall in Thailand, coupled with the potential intensification of the El Niño phenomenon, has heightened supply worries. The heavy rains are expected to continue until mid-October, disrupting tapping activities and limiting production in key areas. The World Meteorological Organization anticipates that El Niño might peak in December and continue affecting supply until early 2027.

Despite these gains, lower crude oil prices, amidst easing concerns over Middle East supply disruptions, have partially limited the increase. Bulk latex also saw a rise, increasing by two sen to 769 sen per kilogram by 3 pm.