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Low demand for finished products has undermined recycling activity across the world, leading to a drop in demand for recyclable materials from manufacturers and secondary producers. Real estate prices and vehicle sales have both suffered a sharp decline. These developments have caused concern in all sectors, including governments.

At the same time, prices for all non-ferrous materials have risen steeply over recent weeks amid a lack of availability of recyclables. Too many people are quoting for the same pile of scrap through fear of further shortages given the lack of consumer spending on finished goods because of scarcer disposable income. A market gain of around 15% in a short timespan has made buyers eager to go for more volume but end-consumers are declining material at the new price levels.

Expectations are that the scrap markets could undergo a slight correction some time in the summer but will tend to remain strong this year. Also expected is more stability in demand as inflated prices cool off, thereby boosting demand and liquidity in the market.