The Kuala Lumpur rubber market closed higher on December 11, 2024, buoyed by gains in regional rubber futures and rising crude oil prices. The price of Brent crude oil increased by 0.26% to $72.43 per barrel, contributing to the positive sentiment in the rubber market [9c8cdda4]. This increase in oil prices is significant as it often correlates with higher production costs for synthetic rubber, thereby enhancing the demand for natural rubber [9c8cdda4].
The Standard Malaysian Rubber 20 (SMR 20) price rose by 10.0 sen to 910.50 sen per kg, while latex in bulk increased by 2.5 sen to 695.00 sen per kg. By 5 PM, the SMR 20 was reported at 915.50 sen per kg and latex in bulk at 698.00 sen per kg, reflecting a robust market response [9c8cdda4].
However, the rubber supply chain is facing challenges due to heavy rains and flooding in Thailand, which have disrupted natural rubber production. Thailand is anticipating a second wave of heavy rain from December 12 to 16, 2024, which could exacerbate supply issues and further impact global rubber prices [9c8cdda4].
In addition to these supply disruptions, China's retail sales of passenger vehicles rose by 18% year-on-year to 2.45 million units in November 2024. This surge in automobile sales is expected to increase demand for rubber products, particularly tires, which could further influence market dynamics [9c8cdda4].
The interplay between these regional trends, including the impact of oil prices and supply chain disruptions in Thailand, is shaping the current landscape of the rubber market. As manufacturers and traders navigate these challenges, the market's response will be closely monitored in the coming weeks [9c8cdda4].