In Thailand, rubber trade starts from collecting and supplying raw material from farmers to buyers i.e. domestic rubber processing factories for the production of primary processing products, which are subsequently sold to domestic manufacturers of various rubber products and buyers in foreign countries.

Rubber raw material from farmers produced most in 2013 by farmers is in the form of dry rubber i.e ribbed smoked sheet, unsmoked sheet, cup lump and rubber scrap, accounting for 80% of total output. Other 20% is in the form of rubber latex (estimated by Rubber Research Institute of Thailand). Rubber raw material is domestically distributed through 3 channels: through local traders to a factory; direct sales from farmers to factory; through central market. In case of farmer groups or farmer cooperatives, ribbed smoke sheets and unsmoked sheets are produced and distributed to a central market. After reaching a factory, this raw material is processed into primary processing products.

In 2013, Thailand produced a total of 4.17 million tons of natural rubber, including 1.6 million tons of TSR (38%), 912,676 tons of ribbed smoked sheet (22%), 804,784 tons of compound rubber (19%), 775,662 tons of concentrated latex (18.5%) and 97,518 tons of other rubber (2.3%). These primary processing products are mainly exported, accounting for 88%, while the other 12% is supplied to rubber product manufacturers domestically. In 2013, Thai natural rubber export quantity totaled 3.6 million tons, including 1.4 million tons of TSR (38%), 793,613 tons of ribbed smoked sheet (21.6%), 713,299 tons of compound rubber (19%), 681,970 tons of concentrated latex (18.6%) and 83,797 tons of other rubber (2.2%), data from Rubber Research Institute of Thailand. Primary processing products are distributed through 2 channels: domestically and internationally.

Rubber market involves various sectors; production, distribution and consumption. Production sector involves rubber growers, rubber cooperatives and processing factories. Distribution sector involves local traders and exporters. Consumption sector involves domestic and foreign rubber product industry and Thai government agency i.e. Rubber Estate Organization.

Generally, rubber trade falls into 3 categories: 1) international market i.e.  Agricultural Futures Exchange of Thailand (AFET), Singapore Commodity Exchange (SICOM), Tokyo Commodity Exchange (TOCOM), Shanghai Futures Exchange (SHFE), etc. 2) direct trade between exporters and users without futures market in which actual price is not disclosed. Most of rubber traders prefer direct trade due to convenience and lower cost. 3) counter trade by the government in which goods are exchanged for other goods.

Additionally, International Tripartite Rubber Council: ITRC, consisting of representatives from Thailand, Malaysia and Indonesia is currently studying the establishment of a regional rubber market to stabilize rubber prices. This market is expected to play an important role in the world market. Thailand is currently studying the establishment of actual deliver market called Exchange Trade Fund (ETF) to stabilize rubber prices and reflect true market price.

From the factors mentioned above, Thai rubber market involves various sectors i.e. farmers, public and private sector, production sector and consumption sector, both domestic and international. The Thai Rubber Association sees the importance of cooperation of all sectors to push forward and develop Thai rubber industry into global level and equality to all sectors, ultimately for greater potential of Thai rubber industry.