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* Steady to positive moves were witnessed in the overseas natural rubber market, while in the Indian market, the commodity continued rising. Lingering worries over supply from the major natural rubber producing countries due to decline in output and logistics constrains continued lending support. Expectation of an interest rate cut in the US too lend support. However, rising geopolitical tensions weighed on, keeping gains under check. In the Indian market, supply crunch continued to push natural rubber prices higher. RSS4 grade rubber was quoted at its highest level in 13-years. Fall in production due to lean production phase, unfavourable weather, firm trend in the overseas market along with hurdles in imports due to container shortage and rising shipping costs amidst robust demand propelled the uptrend.

* As of 02 Aug 2024, rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.8 per cent to 243578 tons from previous Friday.

* Myanmar exported over 62,000 tons of natural rubber, earning over 87 million U.S. dollars in the first quarter of the current fiscal year 2024-2025, the state-run media the Global New Light of Myanmar reported. The country aims to export over 300,000 tons of rubber in the current fiscal year, the report said. Seventy percent of Myanmar's rubber is exported to China, with the rest going to Singapore, Indonesia, Malaysia, Thailand, Vietnam, the Republic of Korea, India, Japan, and other countries, it added. Rubber is mainly produced in Mon and Kayin states, as well as Taninthayi, Bago, and Yangon regions, it said.

* Malaysia's natural rubber (NR) production rose 20.1 per cent month-on-month to 25,608 tonnes in May 2024 from 21,325 tonnes in April 2024, according to the Department of Statistics Malaysia (DoSM). Year-on-year, NR production increased by 6.1 per cent from 24,126 tonnes in May 2023. Citing the Malaysia Rubber Board Digest published in May 2024, DoSM said the Kuala Lumpur rubber market started with a bullish tone, with Standard Malaysian Rubber (SMR) 20 surging to a new high at 840.00 sen per kilogramme (kg), the highest since April 2017 before fluctuating towards month end. “Generally, the market sentiment was boosted by firmer advice in regional rubber futures markets amid concerns over tight global raw materials supply in major producing countries due to heavy rains. “The market sentiment was also supported by China’s strong car sales and the latest stimulus measures announced to shore up the economy,” it said. Prices for all SMR increased between 1.2 per cent and 3.2 per cent in May 2024 compared with the previous month. Meanwhile, DoSM said total NR stock grew 16.9 per cent to 175,368 tonnes in May 2024 versus 211,119 tonnes in April 2024, with rubber processors factory contributing 91.4 per cent of the stocks, followed by rubber consumers factory (8.5 per cent) and rubber estates (0.1 per cent). It said NR exports rose 6.3 per cent to 50,796 tonnes in May 2024 from 47,795 tonnes in the previous month. “China remained as the main destination for NR exports which accounted for 39.2 per cent of total exports in May 2024, followed by India (10.6 per cent), Germany (9.4 per cent), the United Arab Emirates (6.5 per cent) and the United States (4.6 per cent),” it said. It added that gloves were the main exports of rubber-based products with a value of RM1.25 billion in May 2024, an increase of 14.1 per cent as compared to RM1.09 billion in April 2024.

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