BANGKOK—Thailand-based natural rubber 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 U.S."
Group executives have set a sales volume target of 1.5 million metric tons for the year, up 15 percent compared to 2023, Sri Trang said in a March 8 statement.
Sri Trang Agro-Industry President and Executive Director 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 percent and 7 percent 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. The group also will increase production efficiency by "bringing additional automation technology into use within its factories."
Sri Trang also is growing its operations through expansion projects in Thailand and a recently opened raw material purchasing center in Ivory Coast, West Africa.
