What this tab covers How it is regulated and what could disrupt supply: hazard classification, rules in the EU, US and India, anti-dumping duties and other trade measures, and supply-risk notes.
Hazards
Classification
UN number
Key risks
Flammable gas cat 1; gas under pressure; STOT SE 3 (drowsiness)
UN1962 / UN1038
Extremely flammable and can decompose explosively at high pressure; leaks form vapour clouds, as in several cracker fires.
Main rules
Where
Rule
Effect
EU
EU ETS with a steam cracking product benchmark; REACH; Seveso III
Free allocation benchmark could fall 20-27% from 2026 (Argus 2026), raising carbon cost for naphtha crackers.
US
EPA Clean Air Act (HON and ethylene production MACT); OSHA PSM
Flaring and fenceline monitoring rules tightened 2024.
China
NDRC capacity approvals; plan to phase out small crackers
Limits new sub-scale units; supports consolidation.
International
IGC Code for gas carriers
Sets ship design for refrigerated ethylene.
India
Rule
Effect
Manufacture, Storage and Import of Hazardous Chemical (MSIHC) Rules 1989
Ethylene listed; major accident hazard sites need on-site emergency plans and safety reports.
PESO: Static and Mobile Pressure Vessels (Unfired) Rules 2016
Licensing for storage and transport of liquefied gases.
BIS Quality Control Order on polyethylene (Jan 2024, rescinded Nov 2025)
Removed a non-tariff barrier on PE imports (CareEdge 2025).
Trade measures
China 10% additional tariff on most US goods (2025) affects US ethane and ethylene flows
EU CBAM does not cover organic chemicals as of 2026
2026 Iran war: Hormuz oil flows fell below 1 mb/d in April and were about 82% of pre-war in October (Reuters/Kpler), a de facto restriction on Gulf exports
Supply risk
Supply is diversified across many crackers, but cheap export supply is concentrated in the US and Gulf, and Gulf flows depend on the Strait of Hormuz. Ethylene is not on critical raw material lists.