Egypt recyclers reap gains as plastic supplies tighten

Recyclers in Manshiyet Nasser, a dense recycling district in eastern Cairo, report a surge in orders from factories since the US‑Israel war on Iran disrupted shipping through the Strait of Hormuz, officials and industry sources said. Commodities market reaction is still being assessed.

Manshiyet Nasser sees higher factory demand

Industry sources said the squeeze on virgin polymers has pushed manufacturers toward recycled alternatives: packaging and plastic prices have more than doubled for some products, PET demand has roughly tripled, and prices for some recycled plastics rose by up to 60%. ICIS showed about 85% of Middle East polyethylene exports pass through the strait, and the Chamber of Chemical Industries reported that Egypt imports around 40% of its raw plastic materials.

The immediate effect is stronger cash flow for collectors and processors and a shift by some factories to domestic recycled resin; officials said the arrangement also raises questions about worker safety and municipal waste management. Monitor polyethylene price updates and Egypt’s import figures, due by August 1, 2026, for signs the squeeze eases or intensifies.

Workers said factories that previously delayed payments are now calling to secure material and putting down cash upfront. Manshiyet Nasser houses more than 115,000 residents and handles more than a third of Cairo’s waste, data showed, and its informal sorting and baling network has become a faster local supplier of recycled feedstock.