By Halia Pavliva Dec. 1 (Bloomberg) -- Platinum and palladium fell in New York on concern that demand for catalytic converters that use the metals may decline further because November U.S. auto sales probably fell as the economy weakened. A fall would mark the 13th straight monthly drop for U.S. car and light-truck sales, the longest slide in 17 years. Automakers will report sales in the U.S., the world’s biggest market, tomorrow. Platinum, mostly used in catalytic converters for car and truck engines, has fallen 65 percent from a record $2,308.80 an ounce in March as a global slump cut vehicle sales. “We have auto sales this week and platinum is falling on fears there is still contraction in that sector, which is a key sector for the metal,” said Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago. In addition, he said, the “economy is still weak.” Platinum futures for January delivery fell $67.30, or 7.6 percent, to $815 an ounce at 10:30 a.m. on the New York Mercantile Exchange. A November gain of 6.1 percent snapped a four-month slide. The most-active contract was still down 42 percent this year before today. If platinum holds above $750 an ounce, it can trade within a range of $925 and $930 by year-end, Platt said. “I am sincerely excited to see the January platinum contract begin to develop a multiweek channel between $899- $751” an ounce, Ralph Preston, a futures analyst at Heritage West Futures Inc. in San Diego, said in an e-mailed note. “The longer prices trade in a sideways pattern, the more violent the breakout will be.” Palladium Drops 9.9% Palladium futures for March delivery tumbled $19.25, or 9.9 percent, to $175 an ounce in New York. The price dropped 2.7 percent last month, extending the metal’s slide to five months. Before today, the most-active contract sank 49 percent this year. U.S. industrywide car sales are headed for the worst year since 1991 as banks cut back on lending amid rising unemployment and declining consumer spending. U.S. automakers led by General Motors Corp. are seeking $25 billion in federal funds to help stave off collapse. To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.

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