RUBBER-Japan futures fall for third day on Trump tariffs, firmer supply prospects

Reuters
02-11
RUBBER-Japan futures fall for third day on Trump tariffs, firmer supply prospects

Updates market at close

SINGAPORE, Feb 11 (Reuters) -

  • Japanese rubber futures fell for a third straight session on Tuesday as mounting trade tensions dampened market sentiment, while improving weather in top producer Thailand eased supply concerns.

  • The Osaka Exchange (OSE) rubber contract for July delivery JRUc6, 0#2JRU: ended daytime trade 6 yen lower, or 1.63%, at 362.7 yen ($2.39) per kg.

  • The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery SNRv1 rose 60 yuan, or 0.35%, to 17,385 yuan ($2,379.42) per metric ton.

  • The most active February butadiene rubber contract on the SHFE SHBRv1 dipped 10 yuan, or 0.07%, to 14,555 yuan ($1,992.09) per metric ton.

  • U.S. President Donald Trump said on Monday that he would announce plans to impose reciprocal tariffs on other countries over the next two days.

  • These escalations in trade war tensions follow the sweeping 10% tariffs on all Chinese imports into the U.S. that kicked in last week, prompting retaliatory duties from Beijing.

  • Meanwhile, China has pledged to boost residents' income to support spending and "vigorously" improve consumption, according to a cabinet meeting hosted by Premier Li Qiang, the national television broadcaster CCTV reported on Monday.

  • From February 12-17, the northeast monsoon prevailing over the Gulf and the South will weaken, Thailand's meteorological agency said.

  • Still, northeastern Thailand has gradually stopped harvesting and the reduction in supply will support prices, Chinese commodities data provider Longzhong Information said.

  • Meanwhile, shares in Chinese automakers Xpeng 9868.HK and Geely Auto 0175.HK tumbled on Tuesday on worries they will struggle to compete against BYD's 1211.HK move to offer free smart driving features on almost all of its models.

  • Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.

  • The front-month rubber contract on the Singapore Exchange's SICOM platform for March delivery STFc1 last traded at 196.3 U.S. cents per kg, down 0.4%.

($1 = 151.9200 yen)

($1 = 7.3064 Chinese yuan)

(Reporting by Michele Pek; Editing by Sumana Nandy)

((michele.pek@thomsonreuters.com;))

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