Tyre recyclers are warning that a number of factors, including shipping costs, are combining to push up UK industry costs.
The Tyre Recovery Association (TRA) and National Tyre Distributors Association (NTDA) blame a combination of regulatory changes and market conditions.
Peter Taylor, TRA secretary general, whose members account for more than 70% of all used tyre arisings in the UK, said a financial factor shared by other sectors is the rising cost of fuel, coupled with the latest increase in the minimum wage.
“We, like other automotive waste streams, are [also] encountering very significant costs stemming from new fire and site security guidelines imposed by the Environment Agency. These reduce capacity in many instances and put further significant pressure on costs, which will all have to be passed on.
“Add to this the current slowdown for tyre-derived fuel in our Asian export markets and elsewhere due to a four-fold rise in shipping costs, and the problems start to become acute. We have been warning of these adverse factors for some time and now they are hitting us all at once,” Taylor added.
container shipping to tra
Stefan Hay, chief executive of the NTDA, said: “It would be all too easy in difficult times such as these for tyre distributors to fall into the trap of using rogue collectors, many of whom will be operating often in breach of, and therefore illegally, under current S2 exemptions.
“The NTDA urges its members, and other reputable tyre businesses, to invest in the future and only use members of the TRA who have been audited by the Responsible Recycler Scheme.
“Failure to do so will not only undermine the current collection infrastructure, but could also have a devastating long-term impact on end-of-life tyre collection in the UK.”