Natural rubber production dips 0.4pct in January

KUALA LUMPUR: Malaysia's natural rubber production slipped 0.4 per cent to 28,579 tonnes in January 2026 from 28,684 tonnes in December 2025, according to the Statistics Department.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said production was also down 5.9 per cent year-on-year from 30,357 tonnes in January 2025.

He said smallholders accounted for the bulk of output in January 2026 at 87.6 per cent, while estates contributed 12.4 per cent.

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"Total stocks of natural rubber in January 2026 rose 9.3 per cent to 133,042 tonnes from 121,686 tonnes in December 2025.

"Rubber processors' factories held 80.5 per cent of the stocks, followed by rubber consumers' factories at 19.3 per cent and rubber estates at 0.1 per cent," he said in a statement.

Meanwhile, exports of Malaysia's natural rubber rose 30.6 per cent to 41,983 tonnes in January 2026 from 32,139 tonnes in December 2025.

China remained the largest export destination, accounting for 40.3 per cent of total exports, followed by the United Arab Emirates (15.2 per cent), Germany (13.6 per cent), the United States (5.6 per cent) and Brazil (3.6 per cent).

Mohd Uzir said exports were mainly driven by demand for natural rubber-based products such as rubber gloves, tyres, tubes and rubber thread.

Rubber gloves remained the top export product, valued at RM1.2 billion in January 2026, down 8.5 per cent from RM1.3 billion in December 2025.

In terms of pricing, concentrated latex was largely stable at 576.14 sen per kg, while scrap rubber rose 4.5 per cent to 618.72 sen per kg.

Globally, Technically Specified Rubber 20 prices rose 5.9 per cent to US$1.84 per kg in January, based on the World Bank Commodity Price Data.

Mohd Uzir said the Kuala Lumpur rubber market traded on a mixed but generally stable trend throughout the month, according to the Malaysia Rubber Board Digest published in January 2026.

He said prices were supported by tighter raw material supply due to wet weather in major producing countries, higher regional rubber futures and positive economic indicators from the United States and China, including developments in China's automobile sector.

"However, gains were capped by uncertainty over US trade and tariff policies, geopolitical tensions, volatile crude oil prices, profit-taking in futures markets and a stronger ringgit against the US dollar.

"Overall, supply-side constraints and supportive macroeconomic factors helped cushion downside risks, resulting in a stable-to-slightly firmer market for the month," he added.