RUBBER-Japan futures pare gains as US auto tariff threats outweigh supply concerns

SINGAPORE, Feb 19 (Reuters) -

• Japanese rubber futures retreated 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: ended daytime trade 4.8 yen lower, or 1.28%, at 369.3 yen ($2.44) per kg.
• The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery SNRv1 dipped 40 yuan, or 0.22%, to 17,780 yuan ($2,441.23) per metric ton.
• The most active February butadiene rubber contract on the SHFE SHBRv1 fell 75 yuan, or 0.53%, to 14,005 yuan ($1,922.92) 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.
• Japanese shares ended lower, dragged down by automakers.
• Automobile sales could influence the intensity of manufacturing, which involves using rubber-made tyres.
• "Wintering in Africa, Thailand, and Vietnam is tightening supply, while economic uncertainty keeps demand cautious," a Singapore-based trader said.
• Rubber crops usually undergo a season of low production from February to May, before a peak harvesting period that lasts until September.
• Farmers should look out for potential crop damage from February 22-25, Thailand's meteorological agency said, adding that the South should beware of heavy rains and accumulations.
• China shares rose as gains in artificial intelligence-related firms continued to lift market sentiment.
• The front-month rubber contract on Singapore Exchange's SICOM platform for March delivery STFc1 was last down 0.2% at 203.4 cents per kg.

($1 = 151.6000 yen)

($1 = 7.2832 Chinese yuan)