The most active contract in Japanese rubber futures dropped nearly 2 percent on Tuesday, extending losses that followed talks of an improving supply in producing countries in Asia.
Weakness in Tokyo dragged down the price of tyre-grade in Thailand, Indonesia and Malaysia. China was in the market earlier this week, but dealers said the world's main buyer was likely to wait for more price declines.
Benchmark December TOCOM rubber ended 5.2 yen per kg lower at 270.7 yen ($2.32), having traded in a volatile seven yen range. Other contracts fell 1.0 to 5.4 yen per kg.
Dealers said many investors ditched their positions on TOCOM as heavy rains subsided in Thailand and Indonesia but the benchmark contract was likely to find support around 250 yen - a previous low seen in April.
"I think buyers prefer to wait because the market keeps coming down every day. I don't know when they are going to enter the market and at which level," said a physical dealer in Thailand's southern city of Hat Yai.
Benchmark RSS3 rubber sheet for August shipment eased to $2.30 a kg free on board (FOB) from $2.38 a kg on Monday. Tyre-grade Standard Thai Rubber, or STR20 block, for August shipment also fell to $2.30 a kg.
Malaysia's tyre-grade SMR20 edged down to $2.30 from $2.38 a kg. Indonesia's SIR20 was quoted around 102 US cents per pound ($2.24 a kg) free on board Palembang port in South Sumatra for August/September shipment, down from 103 US cents. In Shanghai, the most heavily traded October rubber contract ended 130 yuan per tonne lower at 23,735 yuan ($2,971).