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Michelin’s Rubber Supply Chain Faces Thai Election Disruption

Cons. Discr. - Autos 1108 Indonesia 87 Thailand 120 U.S. 5161

A reduction in rubber exports from Thailand – related to a price control scheme with Indonesia and Malaysia – may be delayed due to the delay in Thai election results. That may disrupt rubber supply chain plans, particularly to the U.S. where tire manufacturers also have an array of tariffs on finished products to deal with. Thailand, Indonesia and Malaysia combined accounted for 82.5% of a total $1.57 billion of U.S. imports of natural rubber in 2018. Michelin may be most affected given Thailand represented 38.9% of its imports in the 12 months to Feb. 28. Other importers include Contin...

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