SINGAPORE: Japanese rubber futures fell to a one-month low on Monday as tariff threats from US President Donald Trump added to concerns of a global trade war, while sustained production in top producer Thailand weighed on prices.

The Osaka Exchange (OSE) rubber contract for July delivery ended daytime trade 5 yen lower, or 1.34%, at 368.7 yen ($2.43) per kg. Earlier in the session, prices hit 366 yen, their lowest since January 10.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery ticked up 30 yuan, or 0.17%, to 17,520 yuan ($2,398.59) per metric ton. The most active February butadiene rubber contract on the SHFE fell 155 yuan, or 1.04%, to 14,720 yuan ($2,015.25) per ton. “This week was a continuation of the bearish market sentiment as wintering in Thailand did not start early,” said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies. Rubber crops usually undergo a wintering season of low production from February to May, before a peak harvesting period that lasts until September. “This, coupled with very cautious tire makers in the midst of tariff news...saw the market trading downwards,” Miller added.

Trump said on Friday he plans to announce reciprocal tariffs on many countries by Monday or Tuesday, and said on Sunday he will introduce new 25% tariffs on all steel and aluminium imports into the US Additional 10% tariffs across all Chinese imports came into effect last week, prompting swift retaliation from Beijing with levies on various goods. The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 197.6 US cents per kg, up 0.4%. Japan’s financial markets will be closed on Tuesday for a public holiday. Trading will resume on Wednesday, February 12.—Reuters