Used Tires & and Scrap Tires . Is it Profitable Business ? 

There are huge numbers of Importers and Exporters engaged in this lucrative business. In my WhatsApp group posting for used and recyclable tyres posting, I realised a lot of Traders do not have enough knowledge of how to tackle this business. Please read the contents properly here it might help you in some sort: 

Used tyres ( it is sold based on its size and the Tread depth ) 

A good tyre’s tread depth should be 6/32 or deeper and if it is 4/32, it is time to replace the tyre. In developing countries, people replace tyres at 2/32 deep. 

For used tires Tread depth: The legal tread limit is 2mm and the excellent Tread depth limit is 8mm. 

How to Import Used tyres? 

Approximately 1500 tyres are loaded in 40 FCL in single-piece load, but if packed in 3 x 1, then it can be loaded 2600 up to 2800 units, for this loading in a zigzag position, a lot of labour cost should be added in Purchasing order. Many countries such as Japan, Hong Kong, Singapore, Korea,  the USA,  and the UK put a lot of restrictions on dealing with products made of Rubber and Plastic. Stockists who stock tyres do not have to pay for the tyres. Here in Hong Kong, for each tyre you collect for disposal, you will not only be given a free tyre but also 4 to 6 HKD to dispose of the tyre. Similarly, in the UK and USA, companies who deal in the tyre industry have special environment licences and permits to collect tyres and dispose of them in dumping or junkyards, then sort grade, and export to other countries while remaining cut into pieces and exported to refineries. The best countries to import used tyres are Germany,  the UK, Scandinavia, the USA, Canada, Japan, Korea, Hong Kong and Singapore. 

The best countries and markets to export used tyres are Russia, Azerbaijan, Turkmenistan, East European countries, Then East African countries. 

Scrap tyres and uses of scrap tyres 

Scrap tyres are exported in 3 parts. 

1) Bundled cut tyres for Pyrolisis plants, Road surfaces, Playground surfaces, Denim jeans factories, Cement industry, the shoe industry etc. 

2) 3 pieces cut ( left and right side and middle ring ) For the purpose of Framing industry. 

3) Regrinds or in a powdered form packed in giant 1 to 3-ton bags. 

Is it worth to Trade used or recycled tyres? 

For Traders and resellers, A big No! 

Tyres and Plastic products are some of those cheapest or dirt cheap commodities, while the cost of disposal and transportation is 30 times more than its actual cost. The seller collects this product and pays for its disposal. It is only a worthwhile business if you invest in your own disposal services units or junk yards. 

How to cut short the expenditures on the importation of Used tyres? 

A) If you are importing recycled tyres, Make sure each shipment has at least 30-50 conventional container loads, and I don’t think any container company would stake risk providing you containers for such a cheap product. In the year 2015, I sent 10 containers to Karachi port, and the buyer refused to take the container due to customs issues, and the shipping company was unable to auction those containers. this is my own experience example. 

But, Another safe and best option is to charter a small 5000-ton marine vessel, and it is easy to find for bulk load tyres no safe keeping or packing is required, nor the weather conditions affect such commodities.

B) If you are in Africa, India or Pakistan, only import used tyres from the Middle East. From Asia, you would not be able to bear high shipping costs. 

C) If you are a trader and have a good investment, then import and re-export to Afghanistan ( port of Discharge they use Karachi or Bander Abbas port Iran ) All you need is to use the “Last used container”, buy at a low price and sell the container with the product as it has a lot of demand. Container companies such as Maerskline, Cosco, Evergreen, APL, etc. auction on a regular basis for the “ last used containers” For example, if you purchase one container priced at USD 1500, you can sell at USD 2000 + the commodity.