RUBBER-Japan futures fall to three-week low on US tariff hit

SINGAPORE, April 3 (Reuters) -

• Japanese rubber futures fell to their lowest since March 11 on Thursday after U.S. President Donald Trump announced a sweeping set of tariffs, dampening the global demand outlook and escalating a trade war.

• The Osaka Exchange (OSE) September rubber contract JRUc6, 0#2JRU: slid 3.92% to finish at 331.3 yen ($2.26) per kg, closing near a three-week low of 331.1 yen.

• The May rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 slumped 3.18% to 16,295 yuan ($2,232.99) per metric ton.

• Prices tumbled to a near 7-month low at 16,310 yuan earlier in the session, their lowest since September 6, 2024.

• The most active May butadiene rubber contract on the SHFE SHBRv1 sank 4.04% to 13,170 yuan ($1,804.75) per ton.

• "Tariff announcements saw rubber futures down across the board, showing that the market is factoring impact to demand," said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies.

• Trump on Wednesday unveiled a 10% tariff on most goods imported to the U.S., worsening a trade war that threatens to drive up U.S. inflation and stall global economic growth.

• Meanwhile, Trump's 25% auto tariffs, kicking in April 3, will cover hundreds of billions of dollars worth of imports of vehicles and auto parts imports annually.

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

• In response to fresh tariffs, equities in Beijing and Tokyo fell to multi-month lows, with China vowing countermeasures on Thursday.

• In the coming week, prices will remain volatile as market participants look for new support and resistance levels, added Miller.

• The front-month rubber contract on Singapore Exchange's SICOM platform for May delivery STFc1 last traded at 185.2 U.S. cents per kg, down 4.1%.

• China's financial markets will be closed on Friday for a public holiday. Trading will resume on Monday, April 7.

($1 = 146.8500 yen)

($1 = 7.2974 Chinese yuan)