KUALA LUMPUR, March 13 (Bernama) -- The Malaysian rubber market eased further to close mostly lower today following the intensifying concerns in the global financial markets over the COVID-19 pandemic.
A dealer said the local rubber market also took the cue from the weaker January 2020 natural rubber (NR) data.
According to a report released by the Department of Statistics Malaysia today, NR exports fell by 9.3 per cent to 45,827 tonnes during the month from 50,516 tonnes in December 2019.
"The market sentiment was also affected by declining car sales as reported by the China Association of Automobile Manufacturers, which showed that China’s car sales in February 2020 had fallen drastically by 79 per cent year-on-year to 310,000," he said.
However, the dealer said the drop in the local rubber market was capped by the depreciating ringgit against the US dollar, as it made the commodity cheaper for international traders.
At 5pm, the local unit weakened to 4.2850 versus the greenback from 4.2590 at yesterday's close.
At 12pm, the Malaysian Rubber Board’s (MRB) reference physical price for tyre-grade SMR 20 fell three sen to 527.5 sen per kg, while latex-in-bulk lost 2.5 sen to 437.0 sen per kg.
At 5pm, the MRB’s reference physical price for SMR 20 rebounded six sen to 539.0 sen per kg, while latex-in-bulk was 5.5 sen lower at 435.5 sen per kg.
TAGS: Rubber market, Malaysian Rubber Board, COVID-19, ringgit, CAAM, DoSM