Demand was moderate as buyers came in for regular purchases. News that Japan May rubber output for tyres dropped by 2.4 per cent year-on-year weighed on sentiment. The Japan Automobile Tyre Manufacturers' Association said last week that the country's rubber output for tyres totalled 84,427 tonnes in May -- a 2.4 percent drop. In the first five months of this year, rubber output for tyres totalled 444,860 tonnes, down 1.2 per cent from the corresponding period last year.

"There are not that many fresh leads in the market this week. We expect the price to hover around this level next week. It depends on the exchange rate as well," said a Hat Yai trader. "News from rubber output for tyres and the bearish outlook of local and regional automobile industry do not bode well for market sentiment here," he said. Thai RSS3 for October shipments was quoted at 73 US cents per kg on FOB basis.