RUBBER-Japan futures hit 3-1/2-month low on tariff concerns

SINGAPORE, March 6 (Reuters) -

• Japanese rubber futures hit a 3-1/2-month low on Thursday, pressured by fears of a trade war between the United States and top rubber consumer China, although tariff reprieves for some automakers cushioned the fall.

• The Osaka Exchange (OSE) August rubber contract JRUc6, 0#2JRU: eased 2.7 yen, or 0.76%, to 351.3 yen ($2.36) per kg by 0215 GMT.

• Prices hit 347.6 yen earlier in the session, their lowest since November 19, 2024.

• The May rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 75 yuan, or 0.43%, to 17,460 yuan ($2,411.07) per metric ton.

• The most-active April butadiene rubber contract on the SHFE SHBRv1 ticked up 10 yuan, or 0.07%, to 13,655 yuan ($1,885.63) per ton.

• "The trade war is adding volatility to the market, leading to cautious sentiment," said a Singapore-based trader.

• U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%.

• Beijing retaliated immediately with hikes to import levies covering $21 billion worth of American agricultural and food products.

• Trump will exempt some automakers from new tariffs for a month as long as they comply with existing free-trade rules, the White House said on Wednesday.

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

• "While rubber prices remain supported by... supply factors, prevailing negativity is making the market wary," the trader said.

• Global natural rubber production is expected to fall short of consumption for the fifth consecutive year in 2025, as higher prices fail to encourage tapping in major producing countries, a senior industry official said.

• The front-month rubber contract on Singapore Exchange's SICOM platform for March delivery STFc1 last traded at 201.4 U.S. cents per kg, down 0.1%.

($1 = 149.0400 yen)

($1 = 7.2416 Chinese yuan)