Global rubber is at the peak of production capacity, and supply and demand are expected to be tightly balanced during the year

It is known that fungal diseases cause rubber tree leaves to turn yellow and become mottled, and older rubber trees are more susceptible to this disease, and the last 90% of the leaves will fall off, which in turn affects latex production
.
Data show that in the first half of 2019, 382,000 hectares of rubber plantations in Indonesia were affected by fungal diseases, which is expected to lead to a decline of 540,000 tons
in Indonesian rubber exports that year.

In addition, in the second half of 2019, Narathiwat province in southern Thailand, bordering Malaysia, was also hit by a fungal virus, affecting at least 50,000 hectares of plantations
.
As we all know, Thailand is the world's largest producer and exporter of rubber, accounting for 40%
of global supply.
Indonesia, Thailand and Malaysia produce about 70%
of global rubber.
Due to the rapid spread of the virus, the market is worried that if the disease is not effectively controlled, the affected area of rubber trees and rubber production may further expand
.

Combining the damage in the three countries, ITRC estimates that rubber production in Indonesia, Thailand and Malaysia fell by 800,000 tonnes in 2019, down 5% from 2018 to 11.
55 million tonnes
.
For global rubber production in 2020, most authorities believe that weather factors and pest factors are still important risks hindering the growth of rubber production, especially fungal diseases, and their control work is arduous, or the global rubber production in 2020 will decline
.
It is expected that global rubber production in 2020 will decline by about 2% compared with 2019, and the supply and demand structure of the rubber market may turn into a tight balance
.