Prices of natural rubber have been recovering since the second week of February, as stimulus measures launched by Beijing such as cuts in borrowing costs and reserve requirements eased investors concerns about the economic impact of the coronavirus in China, the largest rubber consumer. Rubber reached 138 JPY/kg on February 12th, the lowest since November 2018. Since then, prices have been on the rise, mimicking the behaviour of the Shanghai Composite, China's benchmark stock index. Later in 2019, prices of natural rubber were above 175 JPY/kg as fungal disease has been affecting rubber plantations in Indonesia, Malaysia and Thailand.
Historically, Rubber reached an all time high of 526.40 in February of 2011.
Rubber is expected to trade at 165.43 JPY/kg by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 176.49 in 12 months time.