By Jae Hur
Nov. 28 (Bloomberg) -- Platinum futures fell for a second day in Tokyo on concern that the global economic slowdown may reduce output of vehicles that use the metal in exhaust systems.
Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, said it will cut Japan production by 40,000 units between January and March. Fuji Heavy’s full-year global production will fall to 589,000 units from 649,000 units, spokesman Kenta Matsumoto said yesterday. Fuji Heavy will cut 800 temporary and contract workers out of a total of 1,800 such workers at the end of December.
“Market sentiment still remains under pressure as the global economy slides into recession,” said Tatsuo Kageyama, an analyst at Kanetsu Asset Management Co. in Tokyo.
October-delivery platinum fell as much as 0.8 percent to 2,620 yen a gram ($854 an ounce) on the Tokyo Commodity Exchange and was down 0.3 percent at 2,632 yen at the 11 a.m. local time break.
The yen declined to 95.46 per dollar from 95.19 yesterday. The Japanese currency’s weakness against the dollar raises the value of yen-based futures in Tokyo.
Immediate-delivery platinum was little changed at $863.50 an ounce by 11:05 a.m. Tokyo time. Palladium for immediate delivery was down 0.8 at $190 an ounce.
Platinum, used in jewelry and autocatalysts, has declined 62 percent from a record $2,301.50 an ounce in March as sales at carmakers plunged. Automakers globally are cutting production as recessions in the U.S., Japan, and the 15 European nations that use the euro sap demand for cars.
U.S. industrywide car sales are headed for the worst year since 1991 as banks cut back on lending and unemployment rises. U.S. automakers led by General Motors Corp. are seeking $25 billion in federal loans to help stave off a financial collapse.
To contact the reporter on this story: Jae Hur in Singapore at jhur1@bloomberg.net
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