North East Rubber Public Company Limited (SET: NER) expects the natural rubber industry to remain supported in the final quarter of 2026, with demand continuing to grow, particularly in China and India, while global natural rubber supply remains tight. The implementation of the European Union Deforestation Regulation (EUDR) is also expected to influence the industry, as buyers place greater emphasis on raw-material traceability.
Chuwit Jungtanasomboon, Chief Executive Officer of NER, said the company is closely monitoring supply and demand conditions in the natural rubber market while focusing on efficient cost and inventory management and mitigating raw-material risks to cope with market volatility.
The company expects rising rubber prices to support its business during the remainder of the year, with supply constraints continuing to provide support for prices. Natural rubber production has been affected by weather conditions, while demand from major tire manufacturers remains strong.
NER previously assessed that demand from China, India and major automotive-producing countries would remain resilient, while global rubber production had yet to increase significantly. This combination of tight supply and sustained demand is expected to support natural rubber prices in global markets.
Meanwhile, continued growth in the automotive and electric vehicle (EV) industries is expected to support long-term demand for natural rubber. Environmental regulations, particularly the EU’s EUDR, are also prompting operators and manufacturers to place greater emphasis on raw-material sourcing and traceability.
NER has been developing its supplier network and raw-material traceability systems to meet the requirements of the global market. The company has previously said its traceability system covers more than 120,000 rai of rubber plantations, supporting traceability across its supply chain.
“For the third quarter of 2026, the company expects higher average selling prices to support revenue, although sales volume could be affected by tight raw-material supply. We are focusing on managing production across our factories in line with available raw materials in order to maintain operational efficiency and accommodate customer orders,” Chuwit said.
Looking toward the final quarter of 2026, NER will continue to monitor rubber price trends, particularly if supply remains tight while demand from the tire industry continues to gain momentum. Such conditions could provide further support for selling prices and the company’s business performance.
NER also has a strong existing customer base and is preparing its supply chain to accommodate changes in the natural rubber market, Chuwit said.
The company remains confident that its 2026 revenue will reach THB 30 billion, in line with its plan.
NER reported sales revenue of THB 14.36 billion in the first half of 2026, with net profit of THB 690.73 million. In its latest second-quarter update, the company said natural rubber demand and prices remained supportive in the second half of the year.
