KL Rubber Prices Slide on Strong Ringgit, Weak Region

Key Moments

Market Overview

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Feb 12 (Bernama) – The Kuala Lumpur rubber market ended Thursday lower as mixed crude oil prices, a firmer ringgit, and weaker regional rubber futures pressured the market, according to a trader.

Oil Prices and Macro Factors

Crude oil prices were mixed, with participants weighing potential supply disruptions from U.S.-Iran tensions against expectations of stronger demand from a resilient U.S. economy. Meanwhile, macro sentiment reflected uncertainty over U.S. monetary policy.

“The ringgit strengthened against the dollar despite solid U.S. economic data due to uncertainties around the Federal Reserve and broader policy risks,” the trader said.

Currency Strength and Rate Expectations

In the morning session, the ringgit traded at 3.9100/9230, up from Wednesday’s 3.9110/9170. The appreciation, combined with revised U.S. rate expectations, added pressure to local rubber prices.

Market sentiment also suffered from lower optimism for imminent Federal Reserve rate cuts, as traders processed the latest rubber statistics from Malaysia’s Department of Statistics.

Supportive Factors Limit Losses

Despite the weaker close, losses were contained. “Further declines were limited by concerns about lower production in major rubber-producing countries and optimism over China’s policies to promote fair competition in the automobile sector,” the trader said.

Price Summary

By 3 pm, key Kuala Lumpur rubber benchmarks showed the following changes: