Sri Trang expects positive natural rubber development in second half

Bangkok – Thai natural rubber (NR) and rubber gloves major Sri Trang Agro-Industry (STA) expects a second-half recovery in its earnings and profitability following greater clarity on US tariff rates.

In an 11 Aug second-quarter financial statement, the Thai group said it anticipated a stronger business environment for the NR industry, driven by rising demand.

In the second quarter of 2025, STA reported a sharp decline in earnings (EBITDA) to THB648 million (€17 million), down from THB2.1 billion reported for the same period in 2024.

The group also reported an operating loss of THB563 million, compared to a profit of THBE1.1 billion last year.

Sales for the period, however, grew 19.4% year-on-year to THB30 billion, driven by higher NR and gloves volumes and higher average selling prices for gloves.

STA linked the decline in profitability to the impact of US reciprocal tariff measures, which caused NR prices to fall by 20%.

Global commodity price declines also added to the pressure, said STA noting that it will maintain “strong cost management and enhance production and operational efficiency.”

Furthermore, a tariff agreement with the US on a 19% duty on Thai rubber gloves “should benefit the company’s performance,” said CEO Veerasith Sinchareonkul.

The rate, he explained, matches rates for other ASEAN producers and ensures that STA remains competitive.

According to Sinchareonkul, STA aims to continue expanding both NR and glove markets with a particular focus on gloves in the second half of the year.

Meanwhile, the group expects NR prices, which have been softening since the second quarter of 2025, to remain volatile.