KResearch assesses that the coronavirus (COVID-19) pandemic in 2020 will be a short-term factor causing the rubber price structure to change over the long term. This represents an important turning point that will result in a new normal of rubber prices, i.e., rubber prices will likely move within a narrow range and it will be difficult for prices to increase compared to those seen in the past. It is expected that the new normal of Thailand's Natural Rubber Ribbed Smoked Sheet No. 3 (RSS3) prices will be within a range of THB30-50/kg. from 2020 onwards.
In this new context, understanding and accepting changes are crucial in helping all parties concerned to make appropriate adjustments. This also presents a challenge for the public sector to sustain rubber prices and help rubber farmers via a number of measures over the short and long term. Meanwhile, rubber farmers may need to adjust by switching to other crops that offer higher returns or adopt multiple cropping while also seeking extra income. Using innovation to add value to rubber is also imperative in ensuring that Thai rubber prices will be more stable over the long term.