Japan rubber futures decline as fresh Trump tariffs loom

SINGAPORE: Japanese rubber futures fell for a fourth consecutive session on Tuesday, pressured by trade war concerns as new U.S. tariffs loomed.

The Osaka Exchange (OSE) rubber contract for September delivery ended daytime trade 4.7 yen lower, or 1.35%, at 344.3 yen ($2.30) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery eased 80 yuan, or 0.48%, to 16,585 yuan ($2,282.11) per metric ton.

The most active May butadiene rubber contract on the SHFE ticked up 40 yuan, or 0.29%, to 13,600 yuan ($1,871.37) per ton.

Global rubber futures ended the week lower following fresh U.S. tariffs on automobiles, Japan Exchange Group said in a report on Monday.

Last week, U.S. President Donald Trump unveiled a 25% tariff on imported cars and light trucks starting this week, in a move auto industry experts expect will drive up prices and stymie production.

Japanese rubber futures reverse gains

Automobile sales could impact automobile manufacturing, which involves using rubber-made tyres.

Trump is set to announce a massive tariff plan targeting all countries on Wednesday.

The yen has risen nearly 5% against the dollar in January-March and was slightly stronger at 149.815 per dollar.

A stronger currency makes yen-denominated assets less affordable to overseas buyers.

Still, China’s factory activity expanded at its fastest pace in four months in March buoyed by stronger demand and robust export orders, causing Chinese stocks to rise on Tuesday.

Top rubber producer Thailand’s meteorological agency warned of heavy rains that may cause flash floods in the South from April 1-4.

The front-month rubber contract on the Singapore Exchange’s SICOM platform for May delivery last traded at 192.6 U.S. cents per kg, down 0.8%.