Rubber futures tumbled, triggering a suspension of trade, after the worst earthquake on record in Japan forced car makers to halt production, raising concern 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 for all contract months. “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. The Tokyo Commodity Exchange expanded the trading limit for rubber contracts to 40 yen from the previous settlement price, from 30 yen previously, the exchange said on its website. 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.” Plant Suspension Some of the nation’s largest manufacturers -- including Honda Motor Co., Nissan Motor Co., Sony Corp. and beermaker Sapporo Holdings Ltd. -- shut down facilities in northern Japan. Toyota Motor Corp., the world’s biggest carmaker, will suspend production at its Japan factories March 15 and 16, spokeswoman Shiori Hashimoto said by phone today. Isuzu Motors Ltd, a Toyota Motor Corp. affiliate, will halt production at its two Japan plants until March 18, spokesman Koichi Ito said by phone today. Hino Motors Ltd. will halt Japan factories until at March 16, spokesman Shigeru Ito said by phone today. 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 6 percent limit to 33,480 yuan ($5,096) a ton. Government Talks The Thai government plans to hold talks with exporters today to discuss measures to try to prevent a slump in local rubber prices, according to Deputy Prime Minister Suthep Thaugsuban. The free-on-board price, or cost without freight and insurance for Thailand’s benchmark ribbed smoked sheet fell today for a eighth day, tumbling 7.1 percent to 150.25 baht ($4.94) a kilogram as buyers from China and India have delayed purchases, the Rubber Research Institute of Thailand said. The price reached a record 198.30 baht on Feb. 21. The auctioned price of ribbed smoked sheet at a rubber trading center in the southern province in Songkhla plunged 18.6 percent to 105 baht a kilogram, while the price of latex declined 15 percent to 97 baht, the institute said. To contact the reporter on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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