In Cairo’s Manshiyet Nasser district, known locally as Garbage City, recyclers are experiencing a surge in demand for plastic materials amid supply disruptions linked to the ongoing conflict involving Iran. The area, home to over 115,000 residents and a major hub for informal waste recycling, has seen a marked increase in orders from Egyptian factories facing shortages of raw plastic.

The disruption stems from the closure of the Strait of Hormuz, a key shipping route for raw materials used in plastic production, due to tensions between the United States and Iran. As a result, Egypt’s plastic imports—approximately 40 percent of which come from Gulf countries, Europe, China, and South Korea—have been significantly constrained. This has driven local manufacturers to turn increasingly to recycled plastic as an alternative supply.

Peter Romany, a 25-year-old recycling specialist, described a reversal in business dynamics. “Before the war, we were the ones calling factories, trying to sell our material,” he said. “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.” Romany, who specializes in recycled polyethylene—a widely used plastic in packaging—notes the growing urgency among factories to secure local sources.

Manshiyet Nasser’s recycling system, developed over generations of garbage collectors, plays a critical role in the city's waste management, processing more than a third of Cairo’s refuse, according to government data. Residents work and live amid the waste streams, sorting plastics, metals, and other materials into piles destined for factories. The settlement functions as a well-coordinated recycling ecosystem, now operating at heightened capacity due to the supply crunch.

The effect of the shortage is evident in price trends and business activity. Packaging and plastic prices have more than doubled for some products, according to industry sources. This has prompted manufacturers to pay upfront for recycled materials, reversing typical payment patterns. Rizq Yousif, who recycles polyethylene terephthalate (PET) commonly used in beverage packaging, reported that demand for his products has tripled and prices for recycled plastics have increased by as much as 60 percent.

Local businesses along the recycling value chain have also benefited. Fayrouz El-Sayed, CEO of Sadat City Chemical Fibre Factory, a producer of polyester fiber from recycled bottles, indicated the firm has expanded its market reach, including into Brazil, since the onset of the regional crisis. Similarly, Nesma El-Areef, senior marketing manager at Uflex Egypt, which manufactures packaging from recycled plastic, reported a 40 percent rise in demand, particularly from food and beverage manufacturers seeking reliable alternatives to imported materials.

While the current situation has spurred growth in Egypt’s recycling sector, industry experts caution that the boom may be temporary. They anticipate that once global supply routes stabilize, demand for recycled plastic may moderate accordingly.