At least 50 people were evacuated from their homes when hundreds of tyres went up in flames.
Due to the risk of an acetylene canister exploding, those living in Beaumont Street, Toxteth, Liverpool, were moved to local sports centres.
The former tyre yard was well alight when firefighters arrived and a spokesman said crews had not yet reached the cylinder.
Roads in the area have been closed and residents advised to stay inside.
Upper Parliament Street, Beaumont Street and the top of Smithdown Road have all been cordoned off.
Up to 20 firefighters are tackling the flames.
A police spokesman said special buses had been arranged to transport those affected to the temporary accommodation.
He said: "Those who are remaining in their homes are advised to stay indoors and keep away from windows."
No one has been injured and the cause of the fire is under investigation.
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