The Fort Worth Press - Egypt's 'Garbage City' recyclers reap gains from Iran war plastic squeeze

USD -
AED 3.672504
AFN 66.000368
ALL 82.065819
AMD 366.850403
ANG 1.790258
AOA 918.000367
ARS 1477.015602
AUD 1.43185
AWG 1.8
AZN 1.70397
BAM 1.711051
BBD 2.013578
BDT 123.231705
BGN 1.717508
BHD 0.37699
BIF 2973.665792
BMD 1
BND 1.290819
BOB 6.923833
BRL 5.109704
BSD 0.999746
BTN 96.20602
BWP 13.613298
BYN 2.892751
BYR 19600
BZD 2.010507
CAD 1.40265
CDF 2260.000362
CHF 0.807644
CLF 0.023667
CLP 931.460396
CNY 6.77325
CNH 6.77849
COP 3271.49
CRC 453.72027
CUC 1
CUP 26.5
CVE 96.47066
CZK 21.170704
DJF 177.720393
DKK 6.53604
DOP 58.591939
DZD 133.07704
EGP 50.499541
ERN 15
ETB 161.352347
EUR 0.874104
FJD 2.24225
FKP 0.741639
GBP 0.74355
GEL 2.62504
GGP 0.741639
GHS 11.535803
GIP 0.741639
GMD 74.000355
GNF 8767.847144
GTQ 7.627363
GYD 209.152271
HKD 7.84035
HNL 26.773638
HRK 6.587104
HTG 130.665488
HUF 317.240388
IDR 17942.45
ILS 3.03755
IMP 0.741639
INR 96.52615
IQD 1309.635255
IRR 1375000.000352
ISK 125.360386
JEP 0.741639
JMD 158.358413
JOD 0.70904
JPY 162.45604
KES 129.250385
KGS 87.450384
KHR 4041.870984
KMF 429.00035
KPW 900.000068
KRW 1487.770383
KWD 0.30905
KYD 0.833089
KZT 472.493438
LAK 22557.193474
LBP 89520.580902
LKR 335.94331
LRD 180.94884
LSL 16.498307
LTL 2.95274
LVL 0.60489
LYD 6.382383
MAD 9.327058
MDL 17.580129
MGA 4254.649011
MKD 53.874394
MMK 2099.396771
MNT 3588.131807
MOP 8.073156
MRU 39.848993
MUR 47.150378
MVR 15.460378
MWK 1733.515895
MXN 17.539904
MYR 4.095904
MZN 63.910377
NAD 16.498307
NGN 1379.890377
NIO 36.789956
NOK 9.647404
NPR 153.931154
NZD 1.71145
OMR 0.384118
PAB 0.999694
PEN 3.391238
PGK 4.46791
PHP 61.674038
PKR 277.958794
PLN 3.79305
PYG 6059.545578
QAR 3.654275
RON 4.573038
RSD 102.593038
RUB 78.12447
RWF 1472.123187
SAR 3.761064
SBD 8.071362
SCR 13.451668
SDG 600.503676
SEK 9.646704
SGD 1.291204
SHP 0.746601
SLE 24.375038
SLL 20969.507346
SOS 571.311085
SRD 37.611038
STD 20697.981008
STN 21.435008
SVC 8.746851
SYP 110.532098
SZL 16.485564
THB 33.630369
TJS 9.237398
TMT 3.51
TND 2.951865
TOP 2.40776
TRY 47.142504
TTD 6.788884
TWD 32.413104
TZS 2625.998038
UAH 44.654255
UGX 3693.820593
UYU 40.182321
UZS 12006.578947
VES 724.839804
VND 26295
VUV 119.374527
WST 2.738989
XAF 573.873066
XAG 0.017893
XAU 0.000249
XCD 2.70255
XCG 1.801766
XDR 0.712694
XOF 573.870556
XPF 104.34174
YER 238.603589
ZAR 15.987037
ZMK 9001.203584
ZMW 18.218801
ZWL 321.999592
  • CMSC

    -0.0700

    22.03

    -0.32%

  • RIO

    -0.5200

    90.15

    -0.58%

  • NGG

    1.4800

    83.99

    +1.76%

  • RBGPF

    0.0000

    67.35

    0%

  • GSK

    -1.0100

    51.76

    -1.95%

  • CMSD

    -0.0500

    22.26

    -0.22%

  • BTI

    -0.3200

    62.84

    -0.51%

  • BCE

    -0.3000

    21.84

    -1.37%

  • BP

    0.8200

    41.9

    +1.96%

  • BCC

    -2.9500

    77.19

    -3.82%

  • RYCEF

    -0.7700

    17.9

    -4.3%

  • AZN

    -0.3900

    168.9

    -0.23%

  • JRI

    -0.0600

    12.94

    -0.46%

  • VOD

    0.1200

    15.74

    +0.76%

  • RELX

    -0.3200

    33.7

    -0.95%

Egypt's 'Garbage City' recyclers reap gains from Iran war plastic squeeze
Egypt's 'Garbage City' recyclers reap gains from Iran war plastic squeeze / Photo: © AFP

Egypt's 'Garbage City' recyclers reap gains from Iran war plastic squeeze

In the labyrinthine alleyways of Cairo's Garbage City, recycling specialist Peter Romany finds himself fielding calls from factories scrambling for plastic to plug supply shortfalls caused by the Iran war.

Text size:

The 25-year-old is among the hundreds of recyclers and manufacturers across Egypt benefiting from a war-driven surge in demand ever since the United States and Iran choked off the Strait of Hormuz -- a major shipping lane for the raw materials from which plastic is made.

At the heart of the boom is the sprawling eastern Cairo settlement of Manshiyet Nasser, where generations of garbage collectors have built one of the world's most sophisticated informal recycling systems.

"Before the war, we were the ones calling factories, trying to sell our material," Romany told AFP, standing beside towering bales of compressed plastic.

"But after the war broke out, the factories started calling us. They'd ask: How much do you have? Can you deliver today? That never used to happen."

- Built on trash -

Home to more than 115,000 residents, Manshiyet Nasser is a predominantly Coptic Christian neighbourhood nestled beneath the Mokattam hill and facing Cairo's historic Citadel.

The settlement handles more than a third of the capital's waste, according to government figures.

Families live and work under the same roof, often separated from mountains of waste by little more than a staircase or curtain, exposing them to foul odours, plastic fumes and other health risks.

Downstairs, men sort plastics, cardboard, paper, metals and glass into neat piles destined for workshops and factories.

Upstairs, children pore over schoolbooks, mothers prepare lunch and television sets flicker in cramped living rooms, all against the constant background noise of shredders whining and baling presses pounding below.

The smell of rubbish hangs heavy in the air as pickup trucks and handcarts crawl through narrow alleyways, unloading the day's collections while children weave between them chasing footballs.

It's a well-oiled machine, kicked into overdrive by a war more than a thousand kilometres away.

- Cash upfront -

Romany specialises in recycled polyethylene, one of the world's most widely used plastics and a key ingredient in packaging.

According to the pricing agency Independent Commodity Intelligence Services (ICIS), the Middle East is a major global supplier of polyethylene, with around 85 percent of its exports passing through the strait.

Egypt imports around 40 percent of its raw plastic materials, mainly from Gulf countries, Europe, China and South Korea, according to the Chamber of Chemical Industries.

Packaging and plastic prices have more than doubled for some products, three industry sources told AFP, pushing manufacturers towards locally recycled alternatives.

Factories that would normally delay payment started putting down cash upfront "because they were so eager to secure material", said Rizq Yousif, who mainly recycles PET, the plastic widely used in beverage and food packaging.

Yousif told AFP demand had tripled, while prices for some recycled plastics increased by up to 60 percent.

- A temporary boom? -

The disruption has been good for local business all along the value chain.

"We have been in this business for 16 years," said Fayrouz El-Sayed, chief executive of Sadat City Chemical Fibre Factory, which produces polyester fibres from used plastic bottles.

But only since the latest crisis have they managed to crack new markets as far away as Brazil, she said.

Nesma El-Areef, senior marketing and sales manager at Uflex Egypt, which converts plastic waste into new packaging materials, said demand for the company's recycled products rose by up to 40 percent.

"We saw a significant increase in orders, particularly from food and beverage manufacturers, because we offered a more readily available alternative to imported materials," she told AFP.

Despite the gains, industry figures believe the boom could fade once supply routes stabilise.

Yousif said prices and demand began easing shortly after US President Donald Trump announced last month that negotiations with Iran were progressing.

"Just one post dropped the market. After the war, I am not sure this will last," he said.

But this week, Trump said the US was reinstating its blockade of Iranian ports and "taking over" the Strait of Hormuz as fresh fighting between the two countries flared.

Orders have already picked back up, according to both Romany and Yousif.

"We're used to it by now," Yousif said. "Whenever there's trouble there, the customers start calling us."

T.Dixon--TFWP