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Middle East

This summer is certainly one of the hottest witnessed in the northern hemisphere, with soaring record temperatures. Also on the rise are inflation figures globally as well as COVID case numbers, partly as a result of a busy summer travel season. However, it has been a cooler and quieter time for the global recycling industry and scrap markets owing to steep drops in metals prices and demand over recent months.

All of the base metals on the LME had been declining until finding some stability in more recent days. The weakening global economy and manufacturing slowdown have been evident for some time owing to a combination of factors, including: high inflation figures accompanied by rising interest rates; an intensification of the power crisis as a result of the political situation in Europe; and continuous supply chain disruptions due mainly to the lockdowns in China.

In the Middle East, the situation has not changed since returning from the holidays earlier this month, with the slowdown in metals demand and prices owing to declines on the LME leading to lower volumes of supply. Shorter working hours in the Gulf region over the summer period had further slowed procurement in general.