Chuwit Jungtanasomboon, Chief Executive Officer of North East Rubber Public Company Limited (SET: NER), revealed that the outlook for the natural rubber industry in the second half of this year will be supported by sustained demand from major tire manufacturers in the global market, particularly in China, India, and other major automobile-producing countries.
Meanwhile, natural rubber supply remains limited due to weather conditions and the impact of the El Niño phenomenon. As a result, rubber prices are expected to remain at a level that is appropriate for both producers and consumers.
The company is closely monitoring the market situation and price trends, focusing on management within controllable factors. NER employs a “matching order” strategy—aligning the volume of raw material purchases with sales of finished goods in each period to reduce raw material price volatility, along with managing production and administrative costs.
Recently, NER has continuously tracked global rubber prices and environmental factors directly impacting rubber output entering the market. It is evident that global tire manufacturers’ demand for rubber remains steady, while supply has not significantly increased. Accordingly, the company emphasizes efficient cost and inventory management to ensure it can handle market volatility and continue maintaining profitability.
The natural rubber business in the second half of 2026 continues to be driven by consistent demand growth in the rubber industry, especially in China and India, despite ongoing global economic uncertainty. Meanwhile, natural rubber supply in several countries remains affected by erratic weather and the El Niño phenomenon, leading to prices that support business operations. NER remains focused on efficient cost and inventory management, as well as risk management in raw materials, to navigate market volatility and drive revenue in 2026 toward its target of THB 32 billion, Chuwit concluded.
