Japan rubber futures slide on profit taking
SINGAPORE: Japanese rubber futures fell across all exchanges on Thursday as traders booked profits after last week’s rally, while fresh US tariffs on South Korean autos and weak manufacturing data weighed.
The Osaka Exchange (OSE) rubber contract for January delivery was down 7.2 yen, or 2.23%, at 315.5 yen ($2.12) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 435 yuan, or 2.9%, to 14,560 yuan ($2,024.64) per metric ton. The most active September butadiene rubber contract on the SHFE dipped 340 yuan, or 2.87%, to 11,495 yuan ($1,598.44) per metric ton.
In the latest round of US tariffs announced by US President Donald Trump, South Korean automobile exports will face a 15% tariff. Although this rate is lower than the 25% tariff threatened in April, South Korea previously enjoyed zero tariffs on its automobile exports to the US, whereas Japanese automakers had a 2.5% tariff.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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