HS Code:
The 'Rough' category, often associated with unprocessed or raw materials under various HS Codes (e.g., rough timber under HS 4403, rough diamonds under HS 7102), includes products that are in their natural or minimally processed state, primarily used as inputs for further manufacturing or refining. These goods are critical in global supply chains, especially in industries like construction, jewelry, and manufacturing. Trade in rough materials is influenced by resource availability, geopolitical factors, and environmental regulations.
Total Trade Volume
USD 150 billion
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO)
USD 30 billion
20% of total trade of total trade
Increasing
USD 25 billion
16.7% of total trade of total trade
Stable
USD 15 billion
10% of total trade of total trade
Increasing
USD 10 billion
6.7% of total trade of total trade
Decreasing
USD 8 billion
5.3% of total trade of total trade
Stable
Average Rate
5.2%
Highest Rate
15% (applied by certain developing nations to protect domestic processing industries)
Lowest Rate
0% (under free trade agreements like the EU Single Market or USMCA)
Rising demand for sustainable sourcing
Increased certification and traceability requirements are pushing exporters to adopt ethical practices, raising costs but improving market access in eco-conscious regions like the EU.
2021-2023
Shift toward local processing
Countries with abundant raw materials are imposing export bans on rough products to develop domestic industries, reducing global supply and increasing prices.
2020-2022
Technological advancements in extraction
Improved mining and harvesting techniques are increasing supply from previously inaccessible regions, stabilizing prices but raising environmental concerns.
2019-2023
Sanctions on Russian exports of rough timber and diamonds due to the ongoing conflict have disrupted global supply chains, leading to price spikes and a shift in sourcing to alternative markets like Canada and Africa.
March 2022
Global prices for rough materials from Russia have increased by 15-20%, with buyers diversifying supply chains.
Botswana introduced a policy to retain a larger share of rough diamonds for local cutting and polishing, reducing raw exports and aiming to boost value addition.
January 2023
Reduced supply of rough diamonds to international markets, potentially increasing prices by 5-10% in the short term.
The EU adopted a regulation banning imports of rough timber linked to deforestation, requiring strict traceability and certification from exporters.
June 2023
Exporters from tropical regions face higher compliance costs, potentially reducing trade volume to the EU by 10% until fully adapted.