Rubber futures tumbled, triggering a suspension of trade, after the worst earthquake on record in Japan forced car makers to halt production, raising concerns demand may slump.
August-delivery rubber, the most-active contract, plunged 4.5 percent, or 17.9 yen, to 383.5 yen a kilogram ($4,665 a metric ton) on the Tokyo Commodity Exchange. The April-delivery contract tumbled as much as 30 yen to 378.4 yen, triggering a circuit breaker to halt trading.
“People in Japanese markets are selling commodities now to get cash, and will probably continue doing so,” said Kazuhiko Saito, analyst at Tokyo-based commodity broker Fujitomi Co.
Prime Minister Naoto Kan said Japan is facing its worst crisis since the end of World War II, as local media said the death toll from the 8.9-magnitude temblor and subsequent tsunami on March 11 may top 10,000. The Bank of Japan today injected 7 trillion yen ($86 billion) into the financial system.
“The widespread impact from the earthquake has soured market sentiment,” Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co., said by phone today. “It has a direct impact on rubber because Japanese carmakers suspended production.”
Some of the nation’s largest manufacturers -- including Honda Motor Co., Nissan Motor Co.,Sony Corp. (6758) and beermaker Sapporo Holdings Ltd. -- shut down facilities in northern Japan.
Toyota, the world’s biggest car maker, will suspend production at all 12 factories today. Nippon Steel Corp. suspended operations at its Kamaishi plant in Iwate prefecture because of flooding.
Plant Suspension
Nissan Motor said about 2,300 new vehicles were damaged by the tsunami. About 1,300 vehicles set for export to the U.S. at Hitachi port in Ibaraki prefecture, north of Tokyo, and 1,000 others at a service center further north in Miyagi prefecture were swept up in the waves. Nissan also reported minor damage to four factories and two offices and is checking on affiliates, the company said March 12.
Honda Motor will stop production from today at its Sayama, Mouka, Hamamatsu and Suzuka factories, the company said March 12.
May-delivery rubber in Shanghai plunged by the daily limit to 33,480 yuan ($5,096) a ton.
The physical price of Thai rubber fell for a seventh day on March 11, dropping 1.8 percent to 161.75 baht ($5.31) a kilogram amid concerns that tire demand may decline as overseas buyers delay purchases, waiting for prices to weaken further, the Rubber Research Institute of Thailandsaid. The price reached a record 198.30 baht on Feb. 21.
Posts
0 comments