Slump in rubber prices likely over: Michelin

Bangkok

THE slump in global natural rubber prices is probably over because producers are finding it harder to cover their costs and will cut output, according to Michelin & Cie, Europe's largest tyremaker.

Rates have reached a floor of about US$1.50 a kilogram, Luc Minguet, senior vice-president and chief procurement officer, said in an interview in Singapore on March 23. Futures averaged US$1.584 in the past year and were at US$1.431 on Monday.