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Middle East

It feels like the markets have been on a never-ending roller-coaster ride in recent months, with extreme volatility on the LME and fluctuating supply/demand keeping all scrap metal merchants and traders on edge.

Uncertainties surrounding the global economy and heavily negative market sentiment created by inflation or stagflation fears have led to a range of monetary policies which have disrupted the flow of scrap metals. The series of interest rate increases in the USA has pushed the dollar to historical highs against a basket of other currencies, thus dampening commodity prices and slowing the movement of material.

Non-ferrous metals supply and demand have been unstable, with many markets dropping out on lower industrial demand and slow growth. In the Middle East, flows of scrap metal have been steady whenever the LME is less volatile. The main issue is finding the right market amid such turbulence, with slow-paced demand from the main outlets of India, Europe, the Far East and China.

On a brighter note, the latest BIR Convention will be held shortly in Dubai, creating the excitement of meeting each other again. This will be followed by the FIFA World Cup in Qatar, which will certainly have a big impact on the Gulf region with over 1.5 million visitors expected.