HS Code:
Polypropylene (PP), classified under HS Code 3902, is a versatile thermoplastic polymer used in a wide range of applications including packaging, automotive components, textiles, and consumer goods. It is one of the most widely produced and traded plastics globally due to its durability, chemical resistance, and cost-effectiveness. The global trade of polypropylene is driven by demand in manufacturing and packaging industries, with significant production and consumption in Asia, Europe, and North America.
Total Trade Volume
Approximately $50 billion USD
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
$12.5 billion USD
25% of total trade of total trade
Increasing
$8 billion USD
16% of total trade of total trade
Stable
$5 billion USD
10% of total trade of total trade
Stable
$4.5 billion USD
9% of total trade of total trade
Increasing
$3.5 billion USD
7% of total trade of total trade
Increasing
Average Rate
6.5% ad valorem
Highest Rate
12% (imposed by certain developing economies to protect local industries)
Lowest Rate
0% (under free trade agreements like EU Single Market or USMCA)
Rising demand for sustainable polypropylene
Increased investment in bio-based and recycled polypropylene to meet environmental regulations and consumer preferences
2021-2023
Shift in production to Asia-Pacific
Lower production costs and high demand in the region have led to increased exports from countries like China and South Korea
2020-2022
Impact of global supply chain disruptions
Shortages and price volatility due to COVID-19 and geopolitical tensions have affected trade flows
2020-2022
The European Union introduced new regulations under the Circular Economy Action Plan, imposing stricter standards on polypropylene imports to ensure recyclability and reduce single-use plastics.
January 2023
Exporters to the EU must adapt to higher compliance costs, potentially reducing trade volumes from non-compliant countries.
A new phase of trade negotiations between the US and China reduced tariffs on certain polypropylene products as part of broader trade de-escalation efforts.
March 2023
Increased trade flows between the two countries, benefiting US exporters and Chinese manufacturers.
Saudi Arabia announced the expansion of its polypropylene production facilities as part of its Vision 2030 initiative to diversify its economy.
June 2023
Likely to increase global supply and influence price competitiveness, especially in Asian and European markets.