TOKYO, Oct 2 (Reuters) – Key Tokyo rubber ended down over 5 percent at a one-year low on Thursday as a drop in U.S. car sales rekindled worries of falling demand, which outweighed news of the Senate’s passage of the U.S. financial bailout plan.
* The key Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> finished at 246.3 yen per kg, down 14.5 yen or 5.6 percent, after earlier tumbling by the 16 yen daily limit to hit a low last marked in September 2007.
* It was the second day this week for the key contract to fall by the 16 yen daily limit. It tumbled to 250.9 yen on Tuesday after U.S. House lawmakers rejected a similar bailout package for the financial industry.
* The U.S. Senate approved a $700 billion plan late on Wednesday that political and financial leaders called crucial to averting economic catastrophe. [ID:nHKG368564]
* “The economy is looking poor … you have the latest U.S. car sales as one proof of that,” a Tokyo based broker said.
* “The two industrial commodities to take a direct hit from that kind of news are platinum and rubber,” he said. Platinum’s major use is as an auto catalyst to clean car exhaust fumes, while rubber is needed to produce tyres.
* He pegged support for the March contract at 230 yen.
* Major automakers reported plunging U.S. sales for September, led by a 34 percent slide at Ford Motor Co, as the escalating credit crisis hit the slumping industry and raised new doubts about when the world’s auto market would stabilise. [ID:nN01506733]
* U.S. crude oil futures slipped below $97 a barrel on Thursday after the Senate’s approval of the bank bailout bill failed to allay concerns over weakening demand. [O/R]
* The dollar was at around 105.40 yen , well off a four-month low of 103.50 yen struck earlier this week. [USD/]
* Physical rubber prices were mostly down in line with weak TOCOM prices, but the outlook for several grades was unavailable or opaque with many traders away due to public holidays in the region, including China.
* Financial markets in China, the world’s top rubber consumer, are closed this week due to the National Day holiday.
* The lower prices could prompt some bargain-hunting by tyre makers, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH TUESDAY
Grade Price Change
Thai RSS3 (Nov) $2.57/kg -$0.16
Thai RSS3 (Dec) $2.57/kg -$0.16
Thai STR20 (Nov) $2.57/kg -$0.16
Thai STR20 (Dec) $2.57/kg -$0.16
Malaysia SMR20 (Nov) $2.73/kg unavailable
Malaysia SMR20 (Dec) $2.73/kg unavailable
Indonesia SIR20 (Nov) $1.20/lb unavailable
Indonesia SIR20 (Dec) $1.20/lb unavailable
Thai USS3 80 baht/kg – 7 bahts
Thai 60-percent latex (drums, Nov) $1,800/tonne unchanged
Thai 60-percent latex (bulk, Nov) $1,650/tonne unchanged
Note: The price table was not filed on Wednesday due to holidays in Indonesia, Malaysia, Singapore and China, the world’s top consumer of rubber.

Source:  Reuters

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