
SINGAPORE, Feb 19 (Reuters) -
Japanese rubber futures pared gains on Wednesday, as fresh tariff threats from U.S. President Donald Trump on automobiles dampened demand prospects for the tyre-making material, outweighing supply woes in top producer Thailand.
The Osaka Exchange (OSE) rubber contract for July delivery JRUc6, 0#2JRU: was down 4.3 yen, or 1.15%, at 369.8 yen ($2.43) per kg, as of 0223 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery SNRv1 dipped 45 yuan, or 0.25%, to 17,775 yuan ($2,440.72) per metric ton.
The most active February butadiene rubber contract on the SHFE SHBRv1 fell 175 yuan, or 1.24%, to 13,905 yuan ($1,909.32) per ton.
Trump said on Tuesday he intends to impose auto tariffs "in the neighborhood of 25%", the latest in a series of measures escalating trade-war tensions.
Trump's tariffs could cost the auto industry $110 million in added costs each day and potentially $40 billion for the year without major production shifts, analysts said.
Automobile sales could influence the intensity of manufacturing, which involves using rubber-made tyres.
Some bearish traders believe demand is flat in China, and while the operating rate of downstream tyre companies has picked up, the inventory of finished products is higher than a year earlier, Chinese financial data provider Tonghuashun Information said.
Farmers should look out for potential crop damage, with thundershowers, gusty wind and lightning strikes expected from February 22-24, Thailand's meteorological agency said.
Chinese tech stocks continued to rally on Tuesday on optimism that President Xi Jinping's rare meeting with entrepreneurs foreshadowed a reversal in Beijing's treatment of private enterprises, after years of a sector-wide crackdown.
The front-month rubber contract on Singapore Exchange's SICOM platform for March delivery STFc1 last traded at 202 U.S. cents per kg, down 0.9%.
($1 = 152.1700 yen)
($1 = 7.2827 Chinese yuan)