Rubber market ends higher as US-China tariff truce extension lifts sentiment

KUALA LUMPUR: The Malaysian rubber market ended higher on Tuesday, driven by the stable benchmark crude oil prices as sentiment was boosted by fresh optimism over the United States (US)-China tariff truce extension, said a dealer.

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A 90-day US-China tariff truce lifted investor confidence, supporting regional markets.
Malaysia's natural rubber output rose in June, but exports dropped sharply compared to May.
Rubber prices edged up slightly, though gains were limited by mixed futures and currency strength.

It was reported that the US and China extended their tariff truce by 90 days on Monday, easing trade tensions and lifting investor sentiment across the region.

Nevertheless, further gains were limited by a mixed trend in regional rubber futures markets and a slightly stronger ringgit against the US dollar while traders digested the natural rubber (NR) statistics report issued by the Department of Statistics Malaysia (DOSM) today.

The agency said NR production increased by 5.9 per cent to 25,679 tonnes in June 2025 versus 24,256 tonnes in May 2025.

However, on a year-on-year basis, NR output was 14.1 per cent lower compared to 29,881 tonnes in June 2024.

NR exports totalled 29,719 tonnes in June 2025, down 17.3 per cent against May 2025's figure of 35,939 tonnes.

Meanwhile, the dealer said market players were shifting their focus to a key US inflation report due later in the day for cue on the US policy-rate path.

At 3 pm, the Malaysian Rubber Board reported that the price of Standard Malaysian Rubber (SMR) 20 rose 0.5 sen to 736.5 sen per kilogramme (kg) while latex in bulk gained 3.5 sen to 577.5 sen per kg.

-- BERNAMA