Petrochemical & trade
terms, made simple.

A fast-evaporating solvent and co-product of phenol. It is used in coatings, adhesives, pharma and to make MMA and bisphenol A.

Made from propylene and ammonia. It is used in acrylic fibres, ABS plastics and nitrile rubber.

An extra duty on imports from specific countries found to be sold below their normal value. In India it is recommended by the DGTR after an investigation.

A scale showing how heavy or light a petroleum liquid is compared with water. A higher API number means a lighter oil; anything above 10 floats on water.

Hydrocarbons built on a benzene ring. The main ones are benzene, toluene and xylenes, together called BTX.

A body that publishes standard test methods. Petrochemical specs often name ASTM methods, for example ASTM D1209 for APHA colour.

A 25 kg paper, woven PP or PE bag, the usual pack for solids such as PTA, polymers and powders.

A code identifying material produced together. It links the drums or tank to the CoA and allows tracing if a problem appears.

A widely traded reference price, such as Brent or WTI for crude oil, that other prices are set against. Feedstock and petrochemical prices often follow benchmark moves.

A basic aromatic used to make ethylbenzene and styrene, cumene and phenol, cyclohexane for nylon, and linear alkylbenzene.

The import declaration filed with Indian customs (through ICEGATE) to assess duty and clear the goods.

Issued by the shipping line when goods are loaded. It is a receipt, the contract of carriage and, in its original form, the title document needed to collect the cargo.

The temperature at which a liquid boils. Mixed solvents are specified by a distillation range: the initial and final boiling points.

The three core aromatics, produced mainly by catalytic reforming and from pyrolysis gasoline.

A C4 olefin extracted from the cracker C4 stream. It is used for synthetic rubbers such as SBR and polybutadiene, and for ABS plastics.

A unique identifier given to each chemical substance by the Chemical Abstracts Service. For example, MEG is 107-21-1. Quoting the CAS number avoids confusion between similar names.

A refinery process that converts naphtha into high-octane reformate rich in benzene, toluene and xylenes, producing hydrogen as a by-product.

A document from the producer or lab showing the test results for a specific batch against its specification. It is usually sent with every shipment.

A document certifying the country where the goods were made. It is needed for customs, and for claiming reduced duty under a free trade agreement.

The seller pays ocean freight to the destination port, but risk passes to the buyer once the goods are on board at the port of loading. The buyer arranges insurance.

Like CFR, but the seller also buys cargo insurance for the buyer (minimum cover). Risk still passes once the goods are on board at the port of loading.

Like CPT, with the seller also buying insurance. Under Incoterms 2020 the default cover is higher (Institute Cargo Clauses A).

A scale for how colourless a clear liquid is. Lower APHA numbers mean a more water-white product; many solvents specify 10 APHA max.

The final invoice for the goods shipped, showing seller, buyer, description, HS code, quantity, price and Incoterm. Customs uses it to value the goods.

Commodity chemicals are made in large volumes to standard specifications and traded largely on price. Specialty chemicals are made in smaller volumes and sold on performance.

Light liquid hydrocarbons that condense out of natural gas at the surface. Splitters turn it into naphtha and other light products.

The shipper sends the goods, the consignee is entitled to receive them, and the notify party is told when the cargo arrives.

A chemical that could be misused to make illicit drugs or weapons, such as acetic anhydride. Trading it can require registration, records and an end-use certificate.

The seller pays carriage to a named destination, but risk passes when the goods are handed to the first carrier. Works for any mode of transport.

A natural mixture of hydrocarbons pumped from underground reservoirs. Refineries separate it into fractions and convert those into fuels and petrochemical feedstocks.

A licensed agent who files import and export declarations and clears goods through customs. In India the older term is CHA (Custom House Agent).

A shipper's document declaring the UN number, class, packing group and quantity of hazardous cargo. Shipping lines require it before accepting a booking.

The seller delivers to a named place at destination, ready for unloading, and bears risk until then. The buyer handles import clearance and duties.

The seller delivers to the buyer's named place with import duties and taxes paid, carrying the most cost and risk of any Incoterm.

A co-product of MEG production, used in unsaturated polyester resins, plasticisers, solvents and gas dehydration.

The shipping line's authorisation to release the cargo to the consignee, issued once freight is paid and the B/L or telex release is in place.

A charge for keeping a container at the port terminal, or a ship at berth, beyond the free time or laytime allowed.

Mass per unit volume at a stated temperature, for example 0.867 g/cm³ at 20 °C for toluene. It is used to convert between litres and kilograms when filling drums and tanks.

A product made from a basic petrochemical. MEG, polyethylene and styrene are all ethylene derivatives.

A charge for keeping the shipping line's container outside the terminal (for example at your plant) beyond the free days.

Separating a liquid mixture by boiling range. In a refinery the crude column splits crude into gases, naphtha, kerosene, diesel and residue.

The bank releases the shipping documents when the buyer accepts a bill of exchange promising to pay on a future date.

The bank releases the shipping documents to the buyer only when the buyer pays. Also called cash against documents.

The seller delivers and unloads the goods at the named destination and bears risk until unloading is done. The buyer handles import clearance.

A 200–210 litre steel or HDPE container. Net fill depends on density, for example around 160–200 kg for most solvents.

A buyer's signed statement of how and where a product will be used. It is needed for controlled chemicals and for some export destinations.

A light hydrocarbon recovered from natural gas. Cracking ethane gives a high ethylene yield with few co-products.

The largest-volume petrochemical. It is made into polyethylene, ethylene oxide and glycols, EDC and PVC, and styrene.

A highly reactive intermediate made from ethylene. It is converted into glycols, ethoxylates and ethanolamines.

Goods sold from material already sitting in a storage terminal or warehouse, so they can be dispatched quickly.

The seller makes the goods available at its premises. The buyer handles loading, export clearance, freight and everything after, and bears all risk once the goods are placed at its disposal.

The seller places export-cleared goods alongside the buyer's ship at the port of loading. Risk passes there. Sea and inland waterway only.

The seller clears the goods for export and hands them to the buyer's carrier at a named place. Risk passes at that handover. Works for any mode of transport.

A shipment that fills a whole container, booked by one shipper. Faster and safer than sharing a container.

The raw material fed into a process. Ethane and naphtha are feedstocks for steam crackers; ethylene is the feedstock for polyethylene.

A liquid with a flash point of 60 °C or below under the UN transport rules. Most solvents fall into this class and need approved packaging and labels.

The lowest temperature at which a liquid gives off enough vapour to ignite briefly in air when a flame is applied. It decides how a liquid is classified, stored and shipped.

A single-use bag that turns a 20-foot container into a bulk liquid tank of about 16,000–24,000 litres. Used only for non-hazardous liquids.

A refinery unit that cracks heavy gas oil over a hot catalyst into gasoline, LPG and refinery-grade propylene.

The seller clears goods for export and loads them on board the buyer's ship at the named port. Risk passes once on board; the buyer pays ocean freight and insurance.

A contract clause that excuses a party from performing when events beyond its control, such as plant outages, war or natural disasters, prevent it.

Made by oxidising methanol and usually sold as a water solution (formalin). It is used in urea-, phenol- and melamine-formaldehyde resins for wood panels.

The number of days a consignee can keep a container at the port or at site before demurrage or detention starts.

A company that books freight, arranges trucking, documentation and customs, and coordinates the shipment on the shipper's behalf.

An agreement between countries that lowers or removes duties on qualifying goods. Claiming it needs a valid certificate of origin.

A lab method that separates a sample into its components to measure purity and impurities. It is the usual purity test for solvents and aromatics.

The UN system for classifying chemical hazards and showing them on labels and SDSs with standard pictograms, signal words and hazard statements.

The quality level of a product, for example industrial or technical grade, pharma grade (IP, BP, USP), food grade, or reagent / AR grade.

India's tax on the supply of goods and services. On imports it is charged as IGST along with customs duty, and is usually claimable as input credit.

One of nine UN classes for dangerous goods in transport. Class 3 covers flammable liquids and Class 8 corrosives; non-hazardous goods are not regulated for transport.

A standard code that classifies traded goods for customs. The first six digits are international; India uses 8-digit ITC-HS codes. Ethylene glycol is 2905.31.

A compound made only of carbon and hydrogen. Crude oil, natural gas, olefins and aromatics are all hydrocarbons.

A 1,000 litre plastic tank in a steel cage on a pallet base, easy to move by forklift and common for liquids in mid-size lots.

A 10-character code issued by India's DGFT that a business needs before it can import or export goods.

The International Maritime Dangerous Goods Code: the rules for packing, labelling, documenting and stowing dangerous goods on ships.

Tax charged on imported goods, set by HS code. In India it includes Basic Customs Duty, a social welfare surcharge and IGST.

Rules published by the International Chamber of Commerce that set out who arranges and pays for transport, insurance and customs, and where risk passes from seller to buyer. There are 11 rules.

An intermediary who arranges a sale between an overseas supplier and a local buyer. The buyer usually pays the supplier directly and the agent earns a commission.

A small amount of additive, such as TBC in styrene or butadiene, that stops a monomer polymerising on its own in storage or transit.

Proof of cargo insurance cover for the shipment, required under CIF and CIP and often by L/Cs.

A chemical made in order to be turned into another product, such as ethylene oxide on the way to MEG or cumene on the way to phenol.

The international standard for quality management systems. Certified suppliers follow documented processes for production, testing and complaints.

A stainless-steel tank in a 20-foot ISO frame, typically holding about 20,000–26,000 litres. It can carry hazardous and non-hazardous liquids by sea, rail and road.

Compounds with the same molecular formula but a different structure, and so different properties. Ortho-, meta- and paraxylene are isomers.

A flexible woven bag for powders and granules, usually holding 500–1,000 kg, lifted by its loops.

Packaging marks showing the product name, hazard pictograms, signal word and, for dangerous goods, the UN number and class label.

The full cost of goods delivered to your site: product price, freight, insurance, duties, port charges, clearance and inland transport.

The time allowed in a charter for loading or discharging a ship. If it is exceeded, the charterer pays demurrage to the shipowner.

A small shipment that shares a container with other shippers' cargo. Cheaper for small lots but slower, with more handling.

The time from order confirmation to dispatch, or to delivery, depending on how it is quoted.

A bank's promise to pay the seller once compliant shipping documents are presented. It can be at sight or usance, and is usually governed by UCP 600.

Made from benzene and linear paraffins. It is sulphonated into LABSA, the main active ingredient in many detergents.

Propane, butane or a mix of both, stored as a liquid under pressure. Used as fuel and as a cracker feed.

A clear, slightly sweet liquid made from ethylene oxide. Most goes into polyester and PET; it is also the base of antifreeze and coolants.

A simple alcohol made from syngas. It is used to make formaldehyde, acetic acid and MTBE, as a solvent and fuel, and in some regions to make olefins.

1,000 kilograms, the usual unit for pricing bulk chemicals, for example USD per MT.

The amount of water in a product, usually measured by Karl Fischer titration and stated as % or ppm. Many solvents and glycols have tight water limits.

Shows how many atoms of each element are in a molecule, for example C2H4 for ethylene or C6H6 for benzene.

A small molecule that links with others to form a polymer, for example ethylene, propylene, styrene and VAM.

The smallest quantity a supplier will sell in one order, often one pallet, one full container or one ISO tank.

A gasoline oxygenate made from methanol and isobutylene, used to raise octane in some markets.

A light liquid fraction of crude oil, roughly C5 to C10. It is the main steam-cracker feed in Asia and Europe and the feed for catalytic reformers that make aromatics.

Net weight is the product alone; gross weight includes drums, pallets or other packaging. Both appear on the packing list.

Ethane, propane, butanes and natural gasoline separated from natural gas. They are a major petrochemical feed in the US and the Middle East.

Filling the empty space in a tank or drum with nitrogen to keep out moisture and oxygen, protecting sensitive products.

The charge for carrying goods by sea from the port of loading to the port of discharge, plus surcharges such as fuel and port fees.

Material that fails one or more limits in the agreed specification. It may be rejected, reprocessed or sold at a discount.

Hydrocarbons with a carbon–carbon double bond, mainly ethylene, propylene and butadiene. They are the main building blocks for plastics and rubbers.

The seller ships and sends documents directly, and the buyer pays on the agreed due date. It is usually offered only to established customers.

Alcohols such as 2-ethylhexanol and n-butanol made by reacting propylene with syngas. They are used in plasticisers, acrylates and solvents.

A document listing each package with its contents, batch numbers, net and gross weights and marks.

A flat base, usually wood, that drums, bags or IBCs are stacked and shrink-wrapped on for handling by forklift.

The para isomer of xylene and the feed for purified terephthalic acid (PTA), and so for polyester.

A ship with many separate tanks that carries several liquid chemical cargoes (parcels) at once for different customers.

The agreed timing and method of payment, for example 30% advance and 70% against B/L copy, L/C at sight, or 60 days credit.

In India, the Petroleum and Explosives Safety Organisation licenses the import and storage of petroleum products and certain flammable liquids above exempt quantities.

Any chemical made from petroleum or natural gas, from basic olefins and aromatics to the intermediates and polymers made from them.

A 0–14 scale for how acidic or alkaline a water solution is. 7 is neutral, below 7 acidic, above 7 alkaline.

An aromatic made mostly from cumene, with acetone as co-product. It goes into bisphenol A, phenolic resins and caprolactam.

A solid made from orthoxylene, used to produce phthalate plasticisers, alkyd resins and unsaturated polyester resins.

An additive that makes PVC and other plastics soft and flexible. Common types include DOP, DOTP and DINP.

The most widely used plastic, made from ethylene. LDPE and LLDPE are used for films; HDPE for bottles, pipes and drums.

A long-chain molecule built from repeating monomer units. Plastics such as PE, PP, PVC and PET are polymers.

A light, stiff plastic made from propylene, used for packaging, woven sacks, automotive parts and fibres.

The port where goods are loaded onto the ship. Its counterpart, the port of discharge (POD), is where they are unloaded.

The lowest temperature at which a liquid still flows (pour point), or at which it solidifies (freezing point). Some products need heated tanks in cold weather.

Gloves, goggles, face shields, respirators and protective clothing used when handling chemicals. Section 8 of the SDS lists what is needed.

A sample sent to the buyer, or tested by a surveyor, before the full shipment is released, to confirm the product meets the specification.

Published market prices from agencies such as ICIS, Platts and Argus, often used as the reference in contract pricing.

A preliminary invoice issued before shipment so the buyer can pay an advance, open a letter of credit or apply for an import licence.

The second-largest olefin. It goes into polypropylene, propylene oxide, acrylonitrile, cumene and phenol, acrylic acid and oxo alcohols.

A white powder made from paraxylene. Reacted with MEG it makes PET resin and polyester fibre.

The buyer's formal order confirming product, grade, quantity, price, Incoterm, packing, delivery date and payment terms.

The percentage of the main substance in a product, usually measured by gas chromatography or titration, for example MEG 99.9% min.

A plastic made from vinyl chloride, which comes from ethylene and chlorine. Rigid PVC is used for pipes and profiles; flexible PVC needs plasticisers.

An aromatics-rich liquid by-product of steam cracking. After hydrotreating it is an important source of benzene.

An Indian government order requiring certain chemicals and polymers to carry BIS certification before sale or import. The list changes, so check each product's current status.

An agreed allowance on the shipped quantity, for example ±5% at the seller's option, because bulk loads cannot be filled exactly.

The seller's price and terms in reply to an RFQ, including Incoterm, packing, payment terms, lead time and how long the offer is valid.

The EU regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals. Substances sold into the EU above one tonne a year generally need registration.

A plant that separates crude oil by distillation and upgrades the fractions by cracking, reforming and treating, producing fuels, LPG, naphtha and aromatics.

A broad term for polymers sold as raw material, or for reactive binders used in coatings and adhesives, such as alkyd, epoxy and formaldehyde resins.

A sealed sample kept by the supplier from each batch, used to settle any later quality dispute.

A buyer's request for price and terms. A good RFQ gives the product, grade, quantity, packing, delivery place, Incoterm and timing.

A road vehicle with a tank for bulk liquid delivery, common for domestic supply of solvents and glycols.

A 16-section document describing a chemical's hazards, safe handling, storage, first aid, spill response and transport information. MSDS is the older name.

How long a product stays within specification under the stated storage conditions, usually counted from the production date.

The export declaration filed with Indian customs before goods are loaded for export.

How much of a substance dissolves in another. Miscible liquids, such as acetone and water, mix in any proportion.

A liquid used to dissolve or thin other substances. Common petrochemical solvents include toluene, xylene, acetone, MEK, IPA and hydrocarbon solvents.

The ratio of a liquid's density to the density of water. An SG below 1 means the liquid is lighter than water.

The agreed list of properties and limits a product must meet, such as purity, moisture, colour and density, with the test method for each.

A spot deal is a one-off purchase at the current price. A contract supplies agreed volumes over months, often priced against an index.

Heating ethane, LPG or naphtha with steam to about 800–850 °C so the molecules break into smaller ones. The main products are ethylene and propylene, plus butadiene and pyrolysis gasoline.

Made from benzene and ethylene via ethylbenzene. It is polymerised into polystyrene, ABS, SBR and unsaturated polyester resins.

A manufacturer produces the chemical. A supplier or trader sources it from producers and handles sales, packing, logistics and documents for the buyer.

Crude is called sweet when its sulphur content is low (usually below 0.5%) and sour when it is higher. Sour crude needs more treating in the refinery.

The SWIFT message confirming an international payment has been sent. Buyers share a copy as proof of payment.

A mixture of carbon monoxide and hydrogen made from natural gas, coal or biomass. It is the starting point for methanol, ammonia and oxo alcohols.

A product summary of typical properties, uses, packing and storage. Unlike a CoA, it is not tied to one batch.

A bank-to-bank electronic payment. Exporters often ask for a TT advance or payment against a scanned copy of the B/L.

The original bills of lading are surrendered at origin and the line releases the cargo at destination electronically, so no paper originals need to travel.

The standard measure of container capacity. One 20-foot container is 1 TEU and a 40-foot container is 2 TEU.

An independent inspection company, such as SGS, Intertek or Bureau Veritas, that checks quantity and quality at loading or discharge and issues certificates.

An aromatic used as a solvent in paints, inks and adhesives, as a gasoline blend component, and as feed for benzene, xylenes and TDI.

How long goods spend travelling from the port or place of loading to the destination.

The US law governing industrial chemicals. Substances imported into the US generally need to be listed on the TSCA Inventory.

A four-digit number that identifies dangerous goods in transport, for example UN 1230 for methanol and UN 1294 for toluene.

A deferred payment period, for example 90 days from B/L date, under an L/C or documentary collection.

A monomer made from ethylene and acetic acid, used for polyvinyl acetate emulsions, EVA and polyvinyl alcohol.

The pressure of a liquid's vapour at a given temperature. Higher vapour pressure means faster evaporation and, for flammables, more fire risk.

A liquid's resistance to flow, measured in centipoise (cP) or centistokes (cSt). It affects pumping, mixing and spraying.

Organic chemicals that evaporate easily at room temperature. Many regions limit VOC content in paints and coatings.

Three isomers: ortho-, meta- and para-xylene. Mixed xylenes are a solvent; paraxylene goes to PTA and orthoxylene to phthalic anhydride.