Ramadan lull weighs on Indonesia, Malaysia PE trade

The start of the Muslim fasting month of Ramadan in Indonesia and Malaysia is weighing on polyethylene (PE) prices as demand slows.

Trading activity is slowing, with limited appetite for buying as buyers are mostly stocked up. This was reflected in price falls this week for PE and polypropylene (PP).

Linear low-density polyethylene prices yesterday were at $1,000-1,020/t cfr southeast Asia, according to Argus, a $40/t fall from the previous week. PP raffia prices in southeast Asia were assessed at $1,160-1,170/t. PP offers the previous week were mostly at $1,200/t or higher.

The month-long Ramadan started on 6 May and will be followed by the Eid-ul-Fitr holidays in early June.

Few Middle East offers emerged in southeast Asia this week. Middle East producers typically reduce production during Ramadan because of the region's reduced working hours.

Plant operations are also slower during the current summer, which tends to peak from May until July with temperatures in some areas rising above 40°C.