SINGAPORE: Japanese rubber futures lost ground on Tuesday amid concerns over US President Donald Trump’s tariff plans, outweighing prospects of tighter supply from top producer Thailand.
The Osaka Exchange (OSE) rubber contract for August delivery ended daytime trade 5.6 yen lower, or 1.5%, at 368 yen ($2.46) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 215 yuan, or 1.2%, to 17,650 yuan ($2,430.63) per metric ton.
The most-active February butadiene rubber contract on the SHFE ticked up 95 yuan, or 0.69%, to 13,765 yuan ($1,895.61) per metric ton.
US President Donald Trump said on Monday that tariffs on Canadian and Mexico imports are “on time and on schedule.” The tariffs would apply to imports worth over $918 billion, hitting the automotive sector particularly hard. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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