How Lucky Group Managed Through the Global Recession?

While the markets seem to be looking up it has been a very tumultuous phase in the past year of 2013.There was a government lock down in the USA, besides global politics played an important role in the metal business. After a very rough phase that the market went through it was the year of 2014 that bring a change in global markets which influenced that metal scrap market. The markets in Greece were going into an all time low in 2012 and the Greece economic crisis took such a turn that Greece dropped out of the EU. While some of this affected some of the markets, a global recession was very much evident.

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It was a very clear sign that the economy had plunged into an all time low and that it could take time to recover. The year 2014 saw a positive start and the global markets recovered phenomenally. While the metal scrap industry has taken necessary efforts to strengthen it and insulate itself from the global economic slowdown it has not been very successful in the same endeavor as none of the world markets actually did well in 2013 including the IT industry and other industries globally.

We can chronicle this change that started in 2008, the US meltdown that affected all markets globally. There was political unrest in 2011 with tectonic changes in the Middle East, the US and Asia, which resulted in distracting focus from trade. While the activists demanded political action, including a demand for democracy, lesser corruption and nepotism governance it all hinted a sea change that was coming.

Global metal prices of aluminum and copper have been fluctuating and there seems to be no stability. The markets are very volatile could not be stable on the securities or market index. This resulted in indirectly affecting every facet of our lives. So oil prices and metal scrap prices remained influenced by both market forces and political factors.

The Lucky Group is the one of the largest, integrated metal recyclers and secondary aluminum alloy manufacturers in the Middle East. Established in 1973, Lucky Group today has a clientele in over 40 countries worldwide, with exceptional recycling facilities in Dubai, Jebel Ali, Doha.So Lucky Group took some very tough financial decisions when the market essentially full of turmoil and this prevented them from going into debt. The lucky group averted all financial risks possible."We believe that borrowing freely increases your financial exposure; it can be a good recipe for bankruptcy," according to Saleem Shaban of the Lucky Group. The top brass at Lucky Group was compelled to take important financial decisions and avert a financial risk in the trade in times of a global economic slowdown.