Rubber declined to the lowest level in more than a week on concern that demand for the commodity may slow amid signs growth is moderating in the U.S. and China, the world’s largest economies. February-delivery rubber fell as much as 2.6 percent to 360 yen a kilogram ($4,687 a metric ton) on the Tokyo Commodity Exchange before settling at 360.9 yen, the lowest settlement price since Aug. 26. Futures gained 2.9 percent last week. Oil in New York and Asian stocks dropped for a second day after U.S. job growth stalled last month and discord over Europe’s sovereign-debt crisis worsened. China’s non- manufacturing industries grew at a slower pace in August. “The U.S. job data is the key factor pushing commodities markets lower,” Chung Yang Ker, an analyst at Phillip Futures Pte., said by phone from Singapore today. The rubber market is coming under pressure from fear of a recession, Ker said. U.S. payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was smaller than initially estimated, the Labor Department said in Washington on Sept. 2. China’s purchasing managers’ index of non-manufacturing industries dipped to 57.6 from 59.6 in July, the China Federation of Logistics and Purchasing said on its website on Sept. 3. A reading above 50 indicates expansion. The world economy is entering a “new danger zone” amid Europe’s debt difficulties, World Bank President Robert Zoellick said in Beijing on Sept. 3. Demand Concern Futures have lost 13 percent this year amid concern demand for the commodity used for tires and gloves may slow. “Economic data and car sales raised concern that demand for rubber may slow,” said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co. Sales of cars, trucks and buses, excluding minicars, fell to 216,510 vehicles in August, the Japan Automobile Dealers Association said in a statement Sept. 1. Toyota Motor Corp., Japan’s largest automaker, led a 26 percent drop in domestic vehicle sales last month, the 12th straight monthly decline, after government subsidies expired last year. China’s auto sales growth will slow as much as 5 percent to about 19 million units this year after government incentives that boosted deliveries in 2010 were removed, according to State Information Center Research Director Xu Changming. China’s auto sales have slowed this year after surging 32 percent in 2010 to a record, as the government phased out sales-tax breaks and rebates for rural purchases. In Shanghai, rubber for January delivery fell 2.8 percent to close at 32,795 yuan ($5,135) a ton. The cash price of Thai rubber was unchanged at 141.50 baht ($4.73) a kilogram today, according to the Rubber Research Institute of Thailand. To contact the reporter on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

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