Cairo recyclers gain from plastic supply squeeze linked to Iran war

Plastic recyclers in Cairo's Manshiyet Nasser district are receiving more orders from factories looking for alternatives to imported raw materials during supply disruptions linked to the Iran war and restrictions affecting the Strait of Hormuz.

The eastern Cairo settlement, also known as Garbage City, is home to generations of waste collectors and recyclers. Government figures say it handles more than a third of Cairo's waste. More than 115,000 people live in the mostly Coptic Christian neighbourhood beneath Mokattam hill, facing Cairo's historic Citadel.

Recycling specialist Peter Romany, 25, said factories that previously had to be contacted by recyclers are now calling him to ask how much material he can deliver and how quickly. Romany works with recycled polyethylene, a widely used plastic used in packaging.

The pricing agency Independent Commodity Intelligence Services says the Middle East is a major global supplier of polyethylene and that about 85 percent of the region's exports pass through the Strait of Hormuz. Egypt imports about 40 percent of its raw plastic materials, mainly from Gulf countries, Europe, China and South Korea, according to the Chamber of Chemical Industries.

Three industry sources said prices for packaging and some plastic products have more than doubled, pushing manufacturers toward locally recycled alternatives. Rizq Yousif, who mainly recycles PET used in beverage and food packaging, said factories began paying cash upfront because they wanted to secure supplies. He said demand had tripled and prices for some recycled plastics had risen by up to 60 percent.

The gains are being felt across the local supply chain. Fayrouz El-Sayed, chief executive of Sadat City Chemical Fibre Factory, said the company has been in business for 16 years but only during the latest crisis managed to reach new markets as far away as Brazil. Nesma El-Areef, senior marketing and sales manager at Uflex Egypt, said demand for the company's recycled products rose by up to 40 percent, especially from food and beverage manufacturers seeking more available alternatives to imports.

The boom may not last. Yousif said prices and demand started to ease after US President Donald Trump said last month that negotiations with Iran were progressing. The source report said Trump later said the United States was reinstating its blockade of Iranian ports and taking over the Strait of Hormuz as fighting resumed. Romany and Yousif said orders had already risen again.

The recycling system also carries health risks for residents. Families often live above or beside waste sorting areas, with exposure to bad smells, plastic fumes and other hazards while plastics, cardboard, paper, metals and glass are sorted for workshops and factories.