Natural rubber futures on the Tokyo Commodity Exchange were trading below 270 yen per Kg, which is still more than double their all-time low of 129.8 yen per Kg touched in April 2020 when several countries were under strict lockdown measures due to Covid-19. The prices are expected to rally further as production in major exporters Thailand, Indonesia, and Malaysia is expected to decline as the wintering season sets in in the Northern Hemisphere. Also, hopes of a global economic recovery, vaccine rollout and optimism of a proposed USD 1.9 trillion stimulus package should provide further support. On the corporate front, the world’s biggest rubber glove maker Top Glove plans to raise as much as $1.9 billion from a listing in Hong Kong to fund expansion and strengthen its profile with foreign investors. Goodyear Tire & Rubber Co agreed to buy Cooper Tire & Rubber Co for about $2.8 billion, strengthening its position as number 1 in the US market and almost doubling its presence in China.
Historically, Rubber reached an all time high of 526.40 in February of 2011. Rubber - data, forecasts, historical chart - was last updated on March of 2021.
Rubber is expected to trade at 256.45 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 224.69 in 12 months time.