Rubber market closes down as oil prices fall and the Malaysian ringgit strengthens, increasing pressure

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智通财经2026/08/13 10:01

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The Malaysian rubber market closed lower on Thursday, mainly pressured by a decline in crude oil prices and a slight strengthening of the ringgit against the US dollar. Brent crude oil fell by approximately 1.75% on the day to around $87.4 per barrel.
Traders pointed out that oil prices declined as investors assessed a weaker outlook for global demand. However, the lack of substantive progress in the Strait of Hormuz negotiations and concerns over supply disruptions limited the downside for oil prices.
Concerns over slowing global rubber demand and activity in the tire industry also weighed on rubber prices. In June, Malaysia’s natural rubber output increased by about 31.5% month-on-month to around 27 thousand tonnes, and the seasonal increase in supply added further price pressure.
Nevertheless, several factors supported the market, limiting the decline. In July, global electric vehicle sales rose about 9% year-on-year to around 1.85 million units, with strong growth in the European market. At the same time, worries about El Niño may lead to tighter supply in the second half of the year, and the market expects a potential recovery in tire demand in the coming months.
At the close, SMR 20 rubber fell by around 1.5 sen to about 916 sen per kilogram, and bulk latex prices declined by roughly 0.5 sen to about 692 sen per kilogram, with overall market trading remaining subdued.
Looking forward, attention will focus on crude oil price trends and changes in the Middle East situation and their impact on synthetic rubber costs, as well as whether the actual effects of El Niño on tapping activities in major producing areas will be reflected in subsequent output data.

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Rubber market closes down as oil prices fall and the Malaysian ringgit strengthens, increasing pressure

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