On Friday at 3:02 PM (Bangkok time), the share price of Sri Trang Agro-Industry Public Company Limited (SET: STA) jumped by 4.44% or THB 0.60 to THB 14.10, with a trading value of THB 111.12 million.
Sri Trang Gloves (Thailand) Public Company Limited (SET: STGT) soared by 3.62% or THB 0.25 to THB 7.15, with a trading value of THB 40.01 million.
Thai Rubber Latex Group Public Company Limited (SET: TRUBB) increased by 3.33% or THB 0.02 to THB 0.62, with a trading value of THB 73,760.
North East Rubber Public Company Limited (SET: NER) surged by 0.49% or THB 0.02 to THB 4.12, with a trading value of THB 74.42 million.
Shares of rubber-related companies rallied in response to news that the Rubber Authority of Thailand (RAOT) has decided, together with its network, to postpone tapping of rubber trees by one month to support higher rubber prices.
According to the Ministry of Agriculture and Cooperatives, the RAOT and the Board of the Rubber Farmers Network have jointly implemented measures requesting farmers to delay the start of the rubber tapping season by one month—from the original schedule in May 2025 to June 2025.
This postponement is expected to reduce global rubber supply by at least 300,000 tons. Based on the price of Grade 3 Ribbed Smoked Sheet or RSS (uncompacted) at 72.04 baht per kilogram (as announced by the RAOT’s Rubber Economics Division on April 3, 2025), the market value of the withheld rubber could exceed 14.4 billion baht.
The temporary supply reduction is putting pressure on the balance of the global rubber market, raising concerns of potential future shortages. Buyers with advance orders are rushing to purchase rubber for delivery, which has revitalized activity and sentiment in the rubber market.
Additionally, Prof. Dr. Narumon Pinyosinwat commented that the postponement gives rubber farmers an opportunity to tend to their rubber trees, strengthening them and preparing for a more robust harvest in the next season.
Meanwhile, the RAOT is preparing to support farmers through a short-term loan project, funded by the Rubber Fund under Section 49 (3) of the Rubber Authority of Thailand Act, B.E. 2558 (2015), to help rubber farmer institutes procure inputs such as fertilizers and production materials, thereby boosting productivity and reducing costs.
The program allows each institute to secure a single loan of up to 5 million baht, with no interest charged for four months. Applications will open in May 2025.
