Analysts: High Natural Rubber Price to Impact Michelin - Tire Review Magazine

Analysts: High Natural Rubber Price to Impact Michelin

(Clacton, U.K./Tyres & Accessories) Michelin’s budget for raw material costs is expected to increase by 11 per cent year-on-year in 2006.

However, Deutsche Bank analysts report that natural rubber is up 15 per cent so far this year.

“Natural rubber (RSS3) represents 25 per cent of raw material (24 per cent of sales or 4 billion euros), therefore should the natural rubber stay at these levels this would imply a discrepancy of around. 75 million euros on budgeted margins,” the analysts explained.

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