Japanese rubber futures higher amid global trade talks
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery lost 30 yuan, or 0.2%, to 14,945 yuan ($2,082.58) per metric ton. The most active September butadiene rubber contract on the SHFE traded dipped 0.67% to 11,775 yuan ($1,640.84) per metric ton. China's top leaders pledged to improve management of industrial capacity and competition in key sectors during the second half of the year, according to state media reports from the latest Politburo meeting.
US and Chinese officials agreed to seek an extension of their 90-day tariff truce, following two days of talks in Stockholm. This comes after the US reached an agreement with the European Union earlier this week, placing tariffs on most goods at 15% - half the threatened rate.
Despite a seasonal jump in shipments, inventories remain high, pressuring rubber prices, said broker Hexun Futures. Meanwhile, major Japanese automaker Nissan announced plans to stop production at its Civac plant in Mexico by March 2026 as part of a global restructuring. This will reduce Nissan's global production capacity to 2.5 million vehicles from 3.5 million, and cut its manufacturing sites from 17 to 10.
Automobile sales could influence the intensity of vehicle manufacturing, which involves using rubber-made tyres. The front-month rubber contract on the Singapore Exchange's SICOM platform for August delivery last traded at 169.5 US cents per kg, down 1.4%.
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