Kuala lumpur: Standard Malaysian Rubber 20 (SMR 20) closed higher today due to concerns about natural rubber supply and optimism over increased automobile demand, a dealer said.

According to BERNAMA News Agency, Japanese rubber futures saw an uptick, driven by optimism surrounding rising automobile demand after China’s largest electric vehicle maker, BYD Auto Co Ltd, announced plans to enhance EV assembly in Brazil.

BYD is set to begin assembling electric vehicles at a new factory in Brazil as early as this month, according to a top executive, aiming to reduce imports as tariffs start to rise in its largest foreign market. This development has positively influenced market sentiment.

The dealer also reported that Thailand’s meteorological agency has issued warnings about heavy rains and potential accumulations from July 10 to 12, contributing to concerns over natural rubber supply.

Furthermore, market sentiment was bolstered by the United States extending its tariff deadline. US President Donald Trump signed an executive order to extend the deadline for reciprocal trade tariffs to August 1 from July 9, while maintaining an openness to further negotiations.

Despite these positive factors, the dealer noted that further gains were limited by declines in crude oil prices due to ongoing uncertainties regarding US tariffs. Oil prices fell after a previous session’s near two per cent gain, as investors evaluated new developments on US tariffs and a larger-than-expected OPEC+ output hike for August.

At 3 pm, the Malaysian Rubber Board (MRB) reported that the price of Standard Malaysian Rubber 20 (SMR 20) increased by 6.5 sen to 706.50 sen per kilogramme, while latex in bulk remained steady at 565.50 sen per kg.