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Export instability puts pressure on textile recyclers

Export instability puts pressure on textile recyclers

Turbulence in Africa and the Middle East coupled with further strengthening of sterling is putting ‘downward pressure’ on UK export prices for used clothing, the Bureau of International Recycling has been told.

Addressing BIR’s textiles division at the annual convention in Dubai, Alan Wheeler, director of the UK’s Textile Recycling Association (TRA), told delegates that the value of UK used clothing and textiles has continued to decline, with the value of the British Pound now at a seven-year high against the Euro.

UK selling prices for used clothing continue to fall
UK selling prices for used clothing continue to fall

And, textile recyclers have told letsrecycle.com that runaway inflation in Ghana, and restrictions placed on trading routes in Pakistan by the rise of Islamic terrorism in the region, all continue to impact selling prices.

In his report, Mr Wheeler commented that the value of the Pound has risen 11-12% since December 2014, pushing up the price of UK textile exports relative to clothing exporters based in the Eurozone.

And, he said that during that six month period, the value of charity shop grade clothing and clothing collected through textile banks has dropped by about £20 per tonne. Collectors are now paying some councils and charities in the order of £250 per tonne and between £300 and £350 per tonne respectively.

In the Dubai report, Mr Wheeler also noted: “Whilst there has always been a need to dispose of some of the items collected (typically up to 5%), the costs associated with disposing these items has and will continue to rise. I think everyone accepts that on the whole the cost of waste disposal should reflect the cost to society.

“However, there is a logical case to be made to give some dispensation to those re-use and recycling businesses whose core activities actually reduce the amount of waste being disposed of, particularly in these difficult times.”

Uncertainty

For an in-depth look at the issues affecting the textile recycling sector, join us at the Textile Recycling Conference in June. For more information, click here
For an in-depth look at the issues affecting the textile recycling sector, join us at the Textile Recycling Conference in June. For more information, click here

The situation has been exasperated by continued uncertainty in countries that import textiles and used clothing from the UK.

The rise of Islamic State in the Middle East has caused trading difficulties according to one TRA member, including Pakistan – a traditional market for low grade clothing and an entry point for the region. Mr Wheeler also highlights that clothing destined for Pakistan is “suffering”, with flocking, mixed synthetic hosiery and wipers being sold at prices that are “far from satisfactory”.

In Africa, Ghana’s economy has also been badly affected by an alarming decline in currency value coupled with an ongoing energy crisis that has shut down electricity supply to businesses. The TRA member told letsrecycle.com: “As one of the world’s fastest growing economies, Ghana imported thousands of tons of UK second hand clothing a week. It is impossible to say where the future lies.”

Summit

Textile recyclers are also concerned by the decisions made at the East African Communities Head of State Summit in Kenya in February, in which ministers agreed to ‘study the modalities’ for the promotion of domestic textile production and stopping the importation of ‘used clothes, shoes and other leather products’.

Mr Wheeler added: “I would also like to take this opportunity to call upon members of the textiles division to collectively work together on challenging poor research and bad publicity which is contributing to unjustified decisions by politicians, particularly in countries which import used clothing.”

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