RUBBER-Rubber futures slide as US-China trade tensions, weak tyre demand weigh

Oct 14 (Reuters) -

• Rubber futures declined across major exchanges on Tuesday, weighed by concerns over the U.S.-China trade war and weak tire demand in North America.

• The Osaka Exchange (OSE) rubber contract for March delivery JRUc6, 0#2JRU: was down 5.1 yen, or 1.63%, at 306.9 yen ($2.01) per kg as of 0212 GMT.

• The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 lost 150 yuan, or 1%, to 14,840 yuan ($2,079.89) per metric ton.

• The most active November butadiene rubber contract on the SHFE SHBRv1 fell 85 yuan, or 0.78%, to 10,850 yuan per metric ton.

• U.S. President Donald Trump will meet Chinese leader Xi Jinping in late October, as both nations seek to ease tensions over tariff threats and export controls.

• This meeting follows Trump's announcement of an additional 100% tariff on Chinese exports, in response to China's significant expansion of rare earth element export controls.

• Reports of the escalating trade war have sparked concerns that rubber and equity markets in both the U.S. and China may face renewed pressure, Japan Exchange Group said in a report on Monday.

• Meanwhile, French tyre maker Michelin MICP.PA cut its full-year outlook on Monday, citing worse-than-expected demand in the North American market that have eroded sales volumes and margins.

• The company is experiencing downstream effects from weaker car sales, as automakers have been compelled to raise prices and customers have grown more cautious amid the volatile tariff environment.

• Still, oil prices edged up as signs of easing U.S.-China trade tensions bolstered market sentiment. 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 November delivery STFc1 last traded at 169.8 U.S. cents per kg, down 0.3%.

($1 = 152.4200 yen)

($1 = 7.1350 Chinese yuan)