Sri Trang: In light of the recent Thai floods, rubber prices have gown up as supply get's disrupted by damaged plantations, which could add cost pressure's on Sri Trang should they not adopt prior appropriate hedging measures (not sufficiently disclosed). Sri Trang's plantations currently make approximately only 5-8% of its internal supply, although its plantations should not be affected as it it located in Trang (See Chart) below, which is not in the flood zone, however given that Sri Trang purchases the majority of its Latex supply, any sudden surge in rubber prices could weigh on their margins.
Furthermore, the flood has caused many automakers and tyre producers to close down/shut down their factories, which could disrupt sales of Processed Rubber to its customers and cause sales to slow down. So, if any of the above scenario materializes, Sri Trang could be hit both on costs and sales.
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