Ethylene imports from the US to Europe represent a significant volume of trade between the countries. Therefore, the European Commission has announced the start of monitoring of imports of ethylene (C2) and derivatives for plastics processing.
The monitoring is to be in place for three years and covers imports of ethylene and alpha-olefin copolymers (e.g. LLENP) as well as urea containing more than 45% by weight of nitrogen (fertilizer) and ammonium sulfate, which is mainly used as a fertilizer but is also used in the plastics industry as a flame retardant or process additive.
«The surveillance was introduced in response to evidence of a significant and potentially dangerous increase in the share of imported chemicals on the EU market. This increase appears to be the result of overcapacity, particularly in China, as well as the imposition of trade protection measures on imported products by an increasing number of countries,» the EC said.Imports of ethylene and derivatives put under control in the EU.
The EU expects that the information gathered will allow for a “rapid response to level the playing field” in the event of a surge in imports potentially damaging to EU industry.
It is noted that the monitoring does not restrict imports, but rather provides “a timely, structured overview of import trends and other fact-based information.”
The ethylene data shows that between January 1 and March 28, a total of 189,96,000 tons of ethylene and alpha olefin were imported into the EU, worth almost €196 million.
At the same time, C2 imports from the US led the way with a total of 125.15 thousand tons. This is followed by ethylene imports from Saudi Arabia — 47.87 thousand tons, South Korea — 6.3 thousand tons, Canada — 4.7 thousand tons, UAE — 1.7 thousand tons, Singapore — 1.5 thousand tons, Qatar — 1.4 thousand tons, Japan — 0.7 thousand tons, Thailand — 0.3 thousand tons and Switzerland — 0.16 thousand tons. In the total volume of C2 imports, China ranks 11th on the list — with 0.15 thousand tons.
Tariff war between Europe and the US
The EC statement comes at a time when the EU and the US are preparing for a tariff war, which could particularly hit US polyethylene exporters. Experts estimate that in 2024, about 15% of US polyethylene exports, or nearly 2 million tons, were sold to the EU.
In turn, the EU has identified more than 1,700 products for possible countermeasures against the 25% U.S. duties on EU steel and aluminum, including 60 polymer and plastics products. When compared to U.S. product codes, the proposed EU tariffs based on 2024 export targets are different; possible restrictions could affect $5.9 billion worth of U.S. polymer exports to the EU.
A package of measures to support the European chemical industry, due at the end of 2025, recognizes the strategic role of the chemical sector as an “industry of industries” and critical molecules and should propose targeted initiatives to increase the sector’s competitiveness, modernization, and support production and innovation in Europe.