One Singapore-based trader said continued unrest in Indonesia had caused a few delays in deliveries over the past week.

"There were a few delays last week when lorries dared not send supplies to the Port. Normal deliveries resumed shortly, after one or two days, but Japanese buyers are very worried," said the trader at a Japanese firm.

She said European buyers, although not as worried as the Japanese, also took precautions and had adopted a wait-and-see attitude.

Another Singapore trader said concerns over possible floods in plantations in Indonesia, Thailand and Malaysia, the main rubber producers in Asia, would support prices at around current levels although there was still a lack of demand.

"There are also fears that Indonesia may follow Malaysia to impose currency controls," said theSingapore trader.

One trader in Indonesia said: "There is a renewed concern in the market over possible floods caused by La Nina. The country's political situation is also another factor which caused prices to rise."

Indonesian traders said they were holding their stocks until they had a clearer picture on how the market would move.

In Malaysia, traders said they saw more inquiries and expected prices to be firm this week.

"There was a bit of covering and we also heard of inquiries for SMR20 from the Middle East," said one trader.

Traders said they did not expect the International Natural Rubber Organisation (INRO) to continue its intervention from earlier this month after the five-day moving average price for the market stabilising body climbed above its must-buy level.

INRO, which groups major rubber producers and consumers, sets levels at which it will buy and sell to stabilise prices.

Its must-buy level, reached earlier this month, was at 172 Malaysian/Singapore cents a kg. The average wasat 174.07 cents on September 17.

In Thailand, suppliers were holding the raw material also because of political and economic uncertainties in the region.

"That's why prices are holding on in Thailand, but I don't think that will last long. They will have to lower offers a little bit to get buyers," said the second Singapore trader.

At the end of last week, November tyre-grade SIR20 was offered at 26.00 US cents/lb fob Palembang, Surabaya and Medan in Indonesia.

The Malaysian Rubber Board quoted October RSS1 buyer at 69 US cents a kg.

In Singapore, December TSR20 was at 61.50 US cents.