Sri Trang eyes rubber volumes growth amid US, EU demand recovery

Bangkok – Thailand-based natural rubber (NR) major Sri Trang expects demand for the commodity to grow this year, on the back of ‘encouraging signs of recovery in demand in Europe and the US’.

Group executives have set a sales volume target of 1.5 million tonnes for the year, 15% up compared to 2023, said Sri Trang in a 8 March statement.

President and executive director of Sri Trang Agro-Industry Veerasit Sincharoenkul linked the bullish projection to customer inventory trends and concerns about impact of the El Nino weather phenomenon on rubber supply.

According to the Sri Trang executive, an economic recovery in China would also have further positive effect on the overall demand for the industry.

Meanwhile, Sincharoenkul noted that NR prices had gradually increased since the end of last year, with the average price of TSR 20 rubber at the SICOM market up between 5-7% in January and February, compared to December last year.

The Thai NR processor said with the expected higher volumes, it will focus on “managing rubber stocks” to meet demand.

Furthermore, the group will increase production efficiency by “bringing additional automation technology into use within its factories”.

Sri Trang is also growing its operations through expansion projects in Thailand and a recently opened raw material purchasing centre in Ivory Coast, west Africa.