EU Trade Barriers Spread Across Polyurethane Materials

October 27, 2026 6 min read

In June 2026, the European Union formally imposed anti-dumping duties on 1,4-butanediol (BDO), with rates applicable to Chinese companies reaching as high as 113.7%. Around the same time, the EU also initiated anti-dumping investigations into PBAT/PBSeT and certain polyether polyols from China. Although the cases are at different stages, they point to the same issue: as international competition in chemical feedstocks intensifies, tariff barriers are beginning to affect more polyurethane-related materials.

China Is Not the Only Country Subject to Duties

Under Commission Implementing Regulation (EU) 2026/1373, published on June 24, the BDO anti-dumping measures cover China, Saudi Arabia, and the United States. The investigation was requested by European producer INEOS Solvents SA on April 24, 2025, and initiated by the EU on June 6 of the same year. Provisional measures were introduced in February 2026, followed by definitive measures effective from June 25.

Table 1. Definitive EU anti-dumping duty rates on BDO. The rates are calculated on the net price at the EU frontier before duty and do not represent a direct increase in end-product selling prices. Source: Commission Implementing Regulation (EU) 2026/1373.

Notably, the duty rate on US-origin BDO is even higher than that applied to China. This is not a measure targeting China alone, but an EU trade remedy imposed simultaneously on three major sources of supply. According to the EU, the total value of BDO imports from these three countries was approximately EUR 140 million in 2024. This is the combined figure for all three countries, not the value of China’s exports to the EU alone.

Europe Wants to Protect Domestic BDO Capacity, but Downstream Producers Must Also Weigh the Costs

Why has the EU imposed such high duty rates? Official investigation data show that the European BDO industry has indeed been under considerable pressure. Total EU BDO consumption reached approximately 347,100 tonnes in 2024, recovering from 285,200 tonnes in 2023 but still below the 423,900 tonnes recorded in 2021. Meanwhile, nominal BDO production capacity in Europe remained around 470,000 tonnes per year, while capacity utilization stood at only about 40% in 2024, down from 74% in 2021.

Figure 1. EU BDO consumption rebounded in 2024 but had not returned to its 2021 level. Capacity utilization is measured separately and should not be confused with consumption.

The European Commission considers that competition from low-priced imports under investigation contributed to declines in local BDO producers’ profits and operating rates, and that the duties would help restore fair competition. But European downstream companies face another cost calculation: if imported BDO becomes more expensive, producers of THF, PBT, PBAT and other materials may face higher procurement costs, while their products must still compete with finished goods from overseas. The EU investigation documents record concerns raised by some downstream users about this risk.

Therefore, high duties may improve the competitive position of some European upstream producers, but this does not mean the entire European chemical value chain will benefit. The actual impact also depends on whether local plants can increase output, whether sufficient alternative import supply is available, and whether downstream producers can pass higher costs on to customers.

BDO Is Not Just a Feedstock for Biodegradable Plastics; It Is Also Linked to Polyurethane Elastomers

BDO’s connection with polyurethane lies mainly in elastomers and certain specialty chemical materials. BDO can first be converted into tetrahydrofuran (THF), which is then used to produce polytetramethylene ether glycol (PTMEG) for TPU, polyurethane elastomers and spandex. BDO itself can also be used as a chain extender in certain TPU and cast polyurethane elastomer systems. In addition, BDO is a feedstock for polyester materials such as PBAT and PBT.

Table 2. Main downstream pathways for BDO. Specific routes depend on the process and product formulation.

It is important to be clear that these duties apply to BDO, not to PTMEG or TPU, let alone TDI or MDI. The imposition of duties on BDO alone does not mean that costs for all polyurethane products will rise at the same time.

More Notably, Trade Investigations Are Emerging Across Related Materials

The picture becomes clearer when the BDO case is considered alongside two other EU investigations this year. On June 4, following an application by BASF, the EU launched an anti-dumping investigation into PBAT and PBSeT from China, and on July 24 required imports of the products concerned to be registered. On June 30, following an application by BASF, Covestro, PCC Rokita, Shell and Chimcomplex, the EU initiated an anti-dumping investigation into certain polyether polyols from China.

Table 3. The cases are at different procedural stages; import registration or the initiation of an anti-dumping investigation must not be treated as the imposition of definitive duties.

There is another important distinction: the BDO case covers China, the United States and Saudi Arabia, whereas the polyether polyol and PBAT/PBSeT cases concern China. The applications were filed by different companies and cannot simply be regarded as a single coordinated action. Nevertheless, for Chinese chemical companies, export risks are no longer confined to a single feedstock.

Trade Barriers Change the Direction of Orders, Not Necessarily Global Supply and Demand

In the short term, high duties primarily change EU importers’ procurement costs and the competitiveness of different sources of supply. Chinese BDO faces greater difficulty entering the EU market directly, and some orders may shift to local European suppliers or other origins. However, without destination-specific trade data and feedback on actual company orders, it is not yet possible to say how much China’s BDO exports to the EU have fallen, let alone conclude that the global BDO market will face a shortage.

For Chinese companies, the next step is not only to monitor direct BDO exports but also to assess whether downstream materials can maintain their competitiveness. If European upstream feedstocks are protected while overseas PTMEG, TPU and other derivatives can still compete, the distribution of costs among local raw material producers, processors and end customers may shift. Meanwhile, the EU’s investigations into related derivatives also mean that “switching to downstream exports” may not necessarily avoid future trade risks.

The definitive anti-dumping ruling on BDO is now in place, while the polyether polyol and PBAT/PBSeT cases are still proceeding. Rather than predicting which product will face the next round of tariffs, a more practical approach for companies is to consider production costs, destination-market trade rules and customer supply chain stability together. Low feedstock costs still matter, but gaining access to overseas markets on price competitiveness alone is becoming increasingly difficult.

https://www.pudaily.com/news/67728/eu-trade-barriers-spread-across-polyurethane-materials