SINGAPORE: Rubber futures declined across major exchanges on Tuesday, weighed by concerns over the US-China trade war and weak tire demand in North America.
The Osaka Exchange (OSE) rubber contract for March delivery fell 3.6 yen, or 1.15 percent, to 308.4 yen (USD2.03) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery lost 145 yuan, or 0.97 percent, to 14,845 yuan (USD2,079.57) per metric ton.
The most active November butadiene rubber contract on the SHFE fell 155 yuan, or 1.42percent, to 10,780 yuan per metric ton. US President Donald Trump will meet his Chinese counterpart Xi Jinping later this month, as both nations seek to ease tensions over tariff threats and export curbs.
The meeting follows Trump’s announcement of an additional 100 percent 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 US and China may face renewed pressure, Japan Exchange Group said in a report.
Meanwhile, French tyre maker Michelin 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 US-China trade tensions bolstered market sentiment.
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