Japanese rubber futures snap four-session rally on US auto tariffs

SINGAPORE: Japanese rubber futures snapped a four-session rally on Thursday as fresh US automobile tariffs dampened demand prospects for the tyre-making material, though supply concerns cushioned the fall. The Osaka Exchange (OSE) rubber contract for August delivery fell 0.5 yen, or 0.14%, to close at 355.3 yen ($2.36) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery shed 65 yuan, or 0.38%, to 16,975 yuan ($2,337.35) per metric ton.

The most active May butadiene rubber contract on the SHFE gained 120 yuan, or 0.89%, to 13,635 yuan ($1,877.45) per ton. US President Donald Trump on Wednesday unveiled a 25% tariff on imported cars and light trucks starting next week, sending shares of car makers tumbling and driving markets broadly weaker on the day. Automobile sales could influence the intensity of vehicle manufacturing. China’s industrial profits slipped in the first two months of 2025 on persistent deflationary pressures and an escalating trade war with the US. The country’s Vice Premier Ding Xuexiang on Thursday pledged stronger policy support for the economy, which he said was on track to hit this year’s growth target.

Top producer Thailand’s meteorological agency warned of potential crop damage, given isolated heavy rains in the south from March 29-April 2. Upstream raw material prices have been high, though this may prompt Southeast Asia’s production areas to start harvesting early, said Chinese financial information website Tonghuashun Information. Rubber usually undergoes a season of low production from February to May, before a peak harvesting period that lasts until September. The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 194.6 US cents per kg, sliding 0.3%.