The Rubber Authority of Thailand is closely monitoring the conflict situation in the Middle East and remains optimistic about the prospects of the ru

According to Thai media reports, the Rubber Authority of Thailand (RAOT) stated that it is closely monitoring the impact of the Middle East conflict on energy and logistics and holds a cautiously optimistic attitude towards the prospects of the natural rubber industry, expecting further growth in global demand.

The RAOT pointed out that the rubber prices continued to rise in the first quarter of 2026. The price of grade 3 ribbed smoked sheets (RSS3) increased from about 60–61 Thai baht per kilogram in January to 74–75 Thai baht per kilogram at the end of March, mainly supported by the seasonal decline in supply and price stabilization measures. Despite the market fluctuations brought about by the Middle East situation at one time, global demand remains robust.

Analysts said that if the transportation through the Strait of Hormuz is blocked and oil prices rise, it will drive up the prices of synthetic rubber made from petrochemicals, thereby increasing the substitution demand for natural rubber. Currently, the annual global rubber demand is about 22 million tons, of which natural rubber accounts for about 13 million tons. If the cost of synthetic rubber rises, the demand for natural rubber may further expand.

The Association of Natural Rubber Producing Countries (ANRPC) predicts that global demand will increase to 15.6 million tons in 2026, while the production will only be about 15.2 million tons, and the supply-demand situation will still be tight. The RAOT said that if oil prices remain high, the price of Thai ribbed smoked sheets is expected to exceed 100 Thai baht per kilogram. It also advised rubber growers to increase production and reduce costs to cope with market changes. (Economic and Commercial Office of the Embassy of the People's Republic of China in the Kingdom of Thailand)