Malaysia's rubber market ends mixed after China reports slump in car sales

Malaysia's rubber market ends mixed after China reports slump in car sales
-A +A

KUALA LUMPUR (Oct 13): The Malaysian rubber market ended mixed on Wednesday, weighed by weaker regional rubber futures markets and lower car sales data in China, a dealer said. 

He said the China Association of Automobile Manufacturers (CAAM) reported a 19.6% slump in auto sales in September year-on-year to 2.07 million vehicles due to a prolonged global shortage of semiconductors and a disruption in production.

The dealer said market operators were seen digesting the latest World Economic Outlook report by the International Monetary Fund (IMF) and rising expectation that the US Federal Reserve will soon announce a tapering of stimulus.

"IMF expected the global economy to grow 5.9% this year, only slightly lower than what was projected in July, before slowing down to 4.9% in 2022.

"It was also reported that the US Fed is inching closer to tapering its pandemic relief massive bond purchase programme as soon as next month," he said.

The Malaysian Rubber Board’s (MRB) price for Standard Malaysian Rubber 20 (SMR 20) fell eight sen to 714 sen a kilogramme (kg) while latex-in-bulk was up five sen to 515.5 sen per kg.  

At 5pm, MRB’s closing price for SMR 20 stood at 703.5 sen a kg, while latex-in-bulk was at 520.5 sen a kg.