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RUBBER-Japan futures slide as fresh Trump tariffs counter tighter supply

ReutersFeb 17, 2025 2:26 AM

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  • Japanese rubber futures declined on Monday, as fresh U.S. tariff plans on automobiles bolstered rising trade war anxieties, outweighing prospects of weaker supply from top producer Thailand.

  • The Osaka Exchange (OSE) rubber contract for July delivery JRUc6, 0#2JRU: was down 8.6 yen, or 2.28%, at 368 yen ($2.42) per kg, as of 0207 GMT.

  • The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery SNRv1 dipped 30 yuan, or 0.17%, to 17,805 yuan ($2,455.15) per metric ton.

  • The most active February butadiene rubber contract on the SHFE SHBRv1 fell 155 yuan, or 1.08%, to 14,245 yuan ($1,964.26) per ton.

  • U.S. President Donald Trump on Friday said levies on automobilies would be coming as soon as April 2.

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

  • Since his inauguration, Trump has imposed additional 10% tariffs on all Chinese imports, set a March 12 start date for all steel and aluminium imports, and directed his economics team to devise plans for reciprocal tariffs.

  • China, the world's top rubber consumer, is one of the trading partners targeted by Trump's tariff directive.

  • The yen JPY=EBS was last 0.27% stronger at 151.94 per dollar, reversing losses from earlier in the session. USD/

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

  • The overall raw material supply in overseas production areas has decreased, providing some support to rubber prices, Chinese commodities data provider Longzhong Information said.

  • Farmers should prepare for crop damage from February 17-22 as the northeast monsoon strengthens, Thailand's meteorological agency said on their website.

  • The front-month rubber contract on Singapore Exchange's SICOM platform for March delivery STFc1 last traded at 202.8 U.S. cents per kg, down 1%.

($1 = 151.8200 yen)

($1 = 7.2521 Chinese yuan)

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