Material Insights · Understanding the Material World

Propylene: Regulation

Ample supply, but a US-China propane trade risk

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

ClassificationUN numberKey risks
Flammable gas cat 1; gas under pressureUN1077Highly flammable; heavier than air so leaks pool at ground level.

Main rules

WhereRuleEffect
EUREACH; Seveso III; EU ETS (cracker benchmark)Carbon cost on cracker-based supply.
USOSHA PSM; EPA RMPProcess safety rules for large inventories.
ChinaTariffs on US propane (34% to 125% in April 2025, 10% from 14 May 2025)Reshaped PDH feed sourcing (S&P Global).

India

RuleEffect
MSIHC Rules 1989Propylene listed as a hazardous chemical; safety reports for major sites.
PESO SMPV(U) Rules 2016Licensing for pressurised storage and transport.
BIS Quality Control Orders on polymersPE QCO rescinded Nov 2025 (CareEdge); check BIS for PP status.

Trade measures

  • China tariffs on US propane (10% since May 2025)
  • 2026 Hormuz disruption affecting Gulf propane and PP

Supply risk

Overall supply is ample. Feed risk sits in propane trade between the US, Gulf and China. Not on any critical raw material list.