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📦 Vinyl chloride (Chloroethylene)

Vinyl chloride (Chloroethylene)

HS Code:

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Overview

Vinyl chloride, also known as chloroethylene (HS Code: 2903.21), is a key industrial chemical primarily used in the production of polyvinyl chloride (PVC), a versatile plastic material widely used in construction, packaging, and automotive industries. It is a colorless gas with a mild, sweet odor, and is classified as a hazardous material due to its flammability and potential health risks, including carcinogenicity. The global trade of vinyl chloride is driven by demand for PVC products, particularly in developing economies with rapid urbanization and infrastructure development.

Total Trade Volume

Approximately 5.2 million metric tons

Data from 2022

Source

United Nations Comtrade Database, International Trade Centre (ITC)

Tariff Analysis

Average Rate

5.5% ad valorem

Highest Rate

12% (imposed by certain developing countries to protect domestic industries)

Lowest Rate

0% (under free trade agreements such as USMCA and EU-Japan EPA)

Common Restrictions

  • Import quotas in some countries to control hazardous material inflows
  • Strict safety and environmental regulations for transportation and storage
  • Licensing requirements for handling due to health and safety concerns

Market Trends

Growing demand for PVC in construction and infrastructure

Increased production and export of vinyl chloride, especially from the US and China, to meet rising demand in Asia-Pacific and Middle East regions

2021-2022

Shift towards sustainable production methods

Investments in greener technologies to reduce carbon footprint and comply with environmental regulations are influencing production costs and trade dynamics

2020-2022

Fluctuations in raw material prices

Volatility in ethylene and chlorine prices, key inputs for vinyl chloride, affects production costs and export competitiveness

2022

Recent Developments

US Increases Vinyl Chloride Exports Post-Infrastructure Bill

Following the US Infrastructure Investment and Jobs Act, demand for PVC in construction has surged, prompting a significant increase in vinyl chloride exports to meet global supply needs.

November 2021

Strengthened US position as the leading exporter, with a notable rise in trade volume to Asia-Pacific countries.

EU Tightens Regulations on Vinyl Chloride Handling

The European Union introduced stricter safety and environmental regulations for the handling and transport of vinyl chloride, aligning with REACH guidelines to minimize health risks.

March 2022

Increased compliance costs for exporters to the EU market, potentially reducing trade volumes from non-compliant countries.

China Expands Domestic Production Capacity

China announced plans to expand its vinyl chloride production facilities to reduce reliance on imports and support its growing domestic PVC industry.

July 2022

Potential reduction in import demand from China, affecting major exporters like the US and Japan in the long term.