HS Code:
Lactams (HS Code: 2933.71) are a category of organic compounds containing a cyclic amide structure. They are primarily used in the pharmaceutical and chemical industries, with key applications in the production of antibiotics (like penicillin and cephalosporins), polyamides (nylon), and other industrial chemicals. Lactams are critical intermediates in drug synthesis and polymer manufacturing, making them a significant category in global trade. The market is driven by demand in healthcare and industrial sectors, particularly in emerging economies.
Total Trade Volume
USD 2.5 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
USD 800 million
32% of total trade of total trade
Increasing
USD 600 million
24% of total trade of total trade
Increasing
USD 400 million
16% of total trade of total trade
Stable
USD 300 million
12% of total trade of total trade
Stable
USD 200 million
8% of total trade of total trade
Decreasing
Average Rate
6.5%
Highest Rate
12% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Rising demand for antibiotics and pharmaceuticals
Increased production and trade of lactams, especially in Asia-Pacific, due to growing healthcare needs and generic drug manufacturing.
2021-2023
Shift towards sustainable production
Manufacturers are adopting greener synthesis methods for lactams to meet environmental regulations, influencing trade patterns with higher costs in the short term.
2022-2023
Supply chain disruptions due to geopolitical tensions
Trade flows have been affected by export restrictions and raw material shortages, particularly impacting smaller importing nations.
2022
The European Union introduced provisional anti-dumping duties on lactam imports from China to protect domestic producers, following complaints of unfair pricing practices.
March 2023
Likely to increase costs for EU pharmaceutical manufacturers and shift trade towards other suppliers like India.
Under the 'Make in India' initiative, the government has provided subsidies and incentives for lactam production, aiming to reduce reliance on imports.
January 2023
Expected to increase India's export share in the global lactam market over the next 3-5 years.
Ongoing trade disputes have led to higher tariffs on Chinese lactam exports to the US, prompting US buyers to diversify sourcing.
October 2022
Potential short-term supply shortages in the US market, with increased costs for pharmaceutical companies.