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Middle East

Logistics charges have increased to peak levels owing to the issues in the Red Sea, leading to a substantial reduction in local scrap prices in the UAE. Limited vessel availability and high costs have made plastic scrap exports to Europe very difficult.

Meanwhile, the UAE has implemented a plastic scrap export duty which is affecting all margins; the AED 100 duty on low-value scrap materials such as plastic is too much for UAE suppliers to absorb.

In terms of the market, it has been slow in early 2024 but is expected to start picking up from next month onwards.

Awareness around plastic continues to grow in this region and governments are doing their best to reduce waste generation. For example, shops and petrol stations have started charging 0.25 fils per plastic bag (around 7 US cents). Some have also started replacing plastic bags with paper bags.