HS Code:
Toluene, classified under HS Code 290230, is an aromatic hydrocarbon widely used as an industrial solvent and as a precursor in the production of chemicals like benzene and xylene. It is a key component in the manufacturing of paints, coatings, adhesives, and pharmaceuticals. Toluene is derived primarily from petroleum refining and is a critical raw material in various industrial applications. Its trade is influenced by global demand for petrochemical products, regulatory frameworks on chemical safety, and environmental concerns.
Total Trade Volume
Approximately $10.5 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$2.1 billion USD
20% of total trade of total trade
Increasing
$1.8 billion USD
17% of total trade of total trade
Stable
$1.5 billion USD
14% of total trade of total trade
Increasing
$1.2 billion USD
11% of total trade of total trade
Stable
$0.9 billion USD
9% of total trade of total trade
Increasing
Average Rate
5.2% ad valorem
Highest Rate
12% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Rising demand in Asia-Pacific for paints and coatings
Increased export volumes from South Korea and China to meet industrial needs in emerging economies like India and Vietnam
2021-2022
Shift towards bio-based alternatives
Slowed growth in traditional toluene markets as industries explore greener solvents due to environmental regulations
2020-2022
Volatility in crude oil prices
Fluctuations in toluene production costs affecting global pricing and trade competitiveness
2022
The European Union introduced stricter regulations on toluene emissions in industrial processes, requiring advanced containment and monitoring systems.
March 2023
Increased compliance costs for exporters to the EU, potentially reducing trade volumes from non-compliant regions.
A bilateral agreement reduced tariffs on certain petrochemicals, including toluene, to stabilize supply chains amidst global disruptions.
January 2023
Boosted toluene exports from the US to China, strengthening trade ties in the short term.
Major South Korean refineries announced expansions to increase toluene production by 15% to meet growing regional demand.
September 2022
Solidified South Korea’s position as a leading exporter, potentially increasing global supply and stabilizing prices.