RUBBER-Japan futures slide on automobile tariffs, sluggish manufacturing data

July 31 (Reuters) -

• Japanese rubber futures fell across all exchanges on Thursday, as renewed U.S. tariffs on South Korean automobiles and sluggish manufacturing activity in China weighed on prices.

• The Osaka Exchange (OSE) rubber contract for January delivery JRUc6, 0#2JRU: was down 8.4 yen, or 2.6%, at 314.3 yen ($2.11) per kg as of 0221 GMT.

• The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 fell 340 yuan, or 2.27%, to 14,655 yuan ($2,037.34) per metric ton.

• The most active September butadiene rubber contract on the SHFE SHBRv1 dipped 310 yuan, or 2.62%, to 11,525 yuan ($1,602.21) per metric ton.

• In the latest round of U.S. tariffs announced by U.S. President Donald Trump, South Korean automobile exports will face a 15% tariff.

• Although this rate is lower than the 25% tariff imposed in April, South Korea previously enjoyed zero tariffs on its automobile exports to the U.S., whereas Japanese automakers had been subject to a 2.5% tariff.

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

• Elsewhere, China's PMI data showed that manufacturing activity shrank for a fourth month to 49.3 in July, below the 50-mark separating growth from contraction, a sign that the surge in exports ahead of a U.S. tariff deadline has started to fade.

• Meanwhile, top rubber producer Thailand's meteorological agency reported that less rain is likely in the country.

• Still, oil prices rose on supply shortage concerns over Russian oil. O/R

• Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.

• The front-month rubber contract on Singapore Exchange's SICOM platform for August delivery STFc1 last traded at 167 U.S. cents per kg, down 1.1%.

($1 = 148.9200 yen)

($1 = 7.1932 Chinese yuan)