HS Code:
Diols, classified under HS Code 2905.31 (for Ethylene Glycol) and related subcategories, are organic compounds containing two hydroxyl groups. They are widely used in the production of polyesters, polyurethanes, and as antifreeze agents. Key products in this category include ethylene glycol (EG), propylene glycol (PG), and butanediol (BDO). The global trade of diols is driven by demand in industries such as automotive, textiles, packaging, and pharmaceuticals.
Total Trade Volume
USD 10.5 billion
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
USD 2.1 billion
20% of total trade of total trade
Increasing
USD 1.8 billion
17% of total trade of total trade
Stable
USD 1.5 billion
14% of total trade of total trade
Increasing
USD 1.2 billion
11% of total trade of total trade
Stable
USD 0.9 billion
9% of total trade of total trade
Decreasing
Average Rate
5.5% ad valorem
Highest Rate
12% (imposed by India on imports from certain regions)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for bio-based diols
Increased investment in sustainable production methods due to environmental regulations and consumer preference for green chemicals.
2021-2023
Growth in automotive and packaging sectors
Higher consumption of diols for antifreeze and polyester production, particularly in emerging markets like India and Brazil.
2020-2022
Fluctuating raw material prices
Volatility in crude oil prices affects production costs of ethylene and propylene-based diols, impacting trade margins.
2022
The European Union introduced new REACH regulations requiring additional safety data for diol imports, affecting non-EU suppliers.
June 2023
Increased compliance costs for exporters to the EU, potential delays in shipments.
Saudi Basic Industries Corporation (SABIC) announced a new ethylene glycol plant with an annual capacity of 700,000 tons.
March 2023
Likely to strengthen Saudi Arabia's position as the top exporter, potentially lowering global prices.
A new phase of trade talks reduced tariffs on chemical products, including diols, between the US and China.
January 2023
Expected to boost bilateral trade volumes, benefiting Chinese importers and US exporters.