Malaysian Rubber Market Ends Higher on Stable Oil Prices and US-China Tariff Truce Extension

Strategic Insights -

The Malaysian rubber market rallied on Tuesday, buoyed by stable benchmark crude oil prices and the extension of the US-China tariff truce by 90 days. This move eased trade tensions and lifted investor sentiment across the region. Despite some mixed trends in regional rubber futures markets and a slightly stronger ringgit against the US dollar, market players remained optimistic, awaiting cues from the US inflation report later in the day.

Key Takeaways:

  • The US and China extended their tariff truce by 90 days, easing trade tensions and boosting investor sentiment in the region.
  • Malaysian rubber production increased by 5.9% to 25,679 tonnes in June 2025 compared to 24,256 tonnes in May 2025.
  • However, on a year-on-year basis, natural rubber output was 14.1% lower compared to 29,881 tonnes in June 2024.
  • NR exports totalled 29,719 tonnes in June 2025, down 17.3% against May 2025's figure of 35,939 tonnes.
  • The market was looking to the US inflation report later in the day for cues on the US policy-rate path.

The US and China's decision to extend their tariff truce is a positive development for the regional markets, including the Malaysian rubber market. The country's natural rubber production has seen a slight increase, but remains low compared to the same period last year.

Statistics:

  • 5.9%: Increase in Malaysian rubber production in June 2025 compared to May 2025.
  • 25,679: Tonnes of natural rubber produced in June 2025.
  • 14.1%: Decrease in natural rubber output compared to June 2024.
  • 29,881: Tonnes of natural rubber produced in June 2024.
  • 29,719: Tonnes of NR exports in June 2025.
  • 17.3%: Decrease in NR exports in June 2025 compared to May 2025.
  • 35,939: Tonnes of NR exports in May 2025.
  • 0.5 sen: Increase in the price of Standard Malaysian Rubber (SMR) 20 per kilogramme.
  • 736.5 sen: New price of SMR 20 per kilogramme.
  • 3.5 sen: Increase in the price of latex in bulk per kilogramme.
  • 577.5 sen: New price of latex in bulk per kilogramme.

Sources:

  • (BERNAMA News Agency)
  • Department of Statistics Malaysia (DOSM)