In the eastern Cairo neighborhood of Manshiyet Nasser, known locally as "Garbage City," a surge in demand for recycled plastic is reshaping the lives of hundreds of recyclers and manufacturers amid supply disruptions caused by the ongoing conflict between Iran and the United States. The war, which has led to the closure of the Strait of Hormuz—a vital shipping route for raw plastic materials—has significantly tightened the global plastics market, sending manufacturers in Egypt and beyond scrambling for alternatives.

Manshiyet Nasser, home to more than 115,000 residents and recognized for its extensive informal recycling system, now plays a pivotal role in meeting domestic demand for recycled plastics. The settlement processes over a third of Cairo’s waste, with families living and working amid piles of recyclables. Workers segregate plastics, metals, glass, and cardboard in cramped conditions under the shadow of Cairo’s Mokattam hill, contending with health risks such as foul odors and plastic fumes.

Previously, recyclers in Manshiyet Nasser often struggled to sell their collected materials. However, since the escalation of hostilities and the closure of the Strait of Hormuz, roles have reversed. Factories that once resisted upfront payments are now eager to secure supplies, frequently calling recyclers to inquire about availability and delivery capabilities. “Before the war, we were the ones calling factories, trying to sell our material. But after the war broke out, the factories started calling us,” said Peter Romany, a 25-year-old recycling specialist focused on polyethylene, one of the world’s most widely used plastics and a key component of packaging materials.

The global disruption has been particularly acute in the Middle East, where around 85 percent of polyethylene exports traditionally pass through the Strait of Hormuz. Egypt imports roughly 40 percent of its raw plastic materials, sourcing from Gulf countries, Europe, China, and South Korea. With prices for packaging and plastic doubling for some products, many manufacturers have increasingly turned to locally recycled materials. Industry sources indicated that demand for recycled plastics has tripled, with prices rising by as much as 60 percent.

This shift has benefited recyclers across the supply chain. Rizq Yousif, who primarily recycles PET plastic commonly used in beverage and food packaging, reported increased demand and a newfound willingness among buyers to pay upfront. Similarly, Fayrouz El-Sayed, CEO of Sadat City Chemical Fibre Factory, noted that the crisis has opened doors to new export markets, including as far afield as Brazil. Nesma El-Areef, senior marketing and sales manager at Uflex Egypt, which processes plastic waste into new packaging, said the company’s recycled product demand had increased by up to 40 percent.

The evolving dynamics in Manshiyet Nasser highlight how global geopolitical conflicts can ripple into local economies, transforming informal sectors and reshaping supply chains in unexpected ways.