In a report published this week, researchers at Oakdene Hollins Ltd predicted a steady growth in the demand for waste tyres, from 472,000 tonnes this year to 538,000 in 2009.
 Demand is likely to outpace supply for waste tyres, according to the Oakdene Hollins report |
However, the study also highlights the potential dangers for smaller tyre collection businesses if there was a sudden disruption in the marketplace, causing markets to decline.
The research looked at the trends of the tyre market between 2004 and February this year. It also considered legislative changes including this year's ban on the landfilling of shredded tyres (see letsrecycle.com story), forecasting that that recycling would overtake demand.
Writing in the report, Oakdene consultant Stephen Slater said: “At the beginning of 2006 gate fees have been going up, which suggests a shortfall of demand.
“However, the use of tyre shred in landfill engineering is seasonal. Increasing end product application and energy recovery demand may even lead to shortages from 2007 onwards, which will in turn cause a fall in gate fees and bring the market back into balance,” the report added.
Scenarios
In the report, which was published by the Waste and Resources Action Programme, Oakdene Hollins considered a range of possible scenarios and their possible effect on tyre recycling.
The Buckinghamshire firm warned that many small companies could go out of business if the demand for waste tyres undergoes a “major” disruption, such as the collapse of a major end market, like the crumbing of tyres to make sports surfaces.
Stephen Slater said: “If no intervention policies are enacted, it is believed that the major collectors will continue to meet their contracts but that the smaller collectors would quickly find no easy outlet for their tyres and may go out of business.
He said: “Gate fees will increase and this will be passed onto the consumer, who may in turn refuse to pay more to cover the cost of recovery.”
Mr Slater added: “In this case, an increase in fly-tipping is inevitable in the short term as either the less scrupulous operators, or even customers, decide to illegally dump their used tyres rather than pay the higher charges.”
Policy
The Oakdene Hollins report said that market disruptions could be absorbed with support from WRAP's tyres programme and by increasing the supply of tyres to other markets, such as cement kilns and the export industry.
However, the study stressed that Government policy would also be “required” to put contingency plans in place, to minimise the impact.
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Fast-track planning applications for new recycling facilities, accelerated funding for new markets and additional stockpiles would all be needed to prevent tyres amassing illegally all over the country, the report said.
Mr Slater wrote: “In the event of a significant disruption to demand, Government policy intervention would be required to minimise fly tipping and unregulated stockpiling.”
 Graph showing predicted growth and demand for waste tyres within the Oakdean Hollins report |
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