Tokyo rubber falls further on tyre demand fears

TOKYO Aug 5 (Reuters) - Tokyo rubber futures fell more than 2 percent on Tuesday, extending their recent decline into a third session on concerns about tyre demand.

* The key Tokyo Commodity Exchange rubber contract for January delivery <0#JRU:> traded at 315.2 yen per kg, down 7 yen or 2.2 percent from the previous close. It earlier fell as low as 314.6 yen, a new two-month low.

* The next technical support is seen around 313 yen, near the recent trough of 313.4 yen marked on June 2.

* Cash platinum XPT=, a key precious metal used to clean vehicle exhaust fumes, fell to its lowest level in more than six months on Tuesday on fears of falling demand from automakers.

There are concerns that weak automobile demand in the United States, the world's biggest auto market, due to higher fuel costs will dampen sales of tyres and the natural rubber used to make them.

* "Compared with the recent tumble in other commodities, rubber hasn't fallen so much as it is basically underpinned by tight physical supply," said a Tokyo-based rubber trader.

* Oil stayed under pressure on evidence of rising OPEC output and declining U.S. demand amid a weak economic outlook. [O/R]

U.S. crude CLc1 traded at $120.38 per barrel, near a three-month low marked the previous day and down 18 percent from the mid-July peak above $147.

* In corporate news, Japanese tyre maker Bridgestone Corp (5108.T) is set raise prices for the third time this year on products sold in North America. Bridgestone said in a statement on Aug. 1 that it will raise tyre prices by up to 10 percent, effective Sept. 1, due to higher fuel and raw material costs.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY

Grade Price Change

Thai RSS3 (August) $3.05/kg -$0.05

Thai RSS3 (Sept) $3.05/kg -$0.05

Thai STR20 (August) $3.06/kg -$0.04

Thai STR20 (Sept) $3.06/kg -$0.04

Malaysia SMR20 (August) $3.05/kg -$0.08

Malaysia SMR20 (Sept) $3.05/kg -$0.08

Indonesia SIR20 (August) $1.37/lb -$0.02

Indonesia SIR20 (Sept) $1.37/lb -$0.02

Thai USS3 95 baht/kg - 2 baht

Thai 60-percent latex (drums, Aug) $2,100/tonne -$20

Thai 60-percent latex (bulk, Aug) $1,970/tonne -$30 (Reporting by Risa Maeda; Editing by Chris Gallagher)