Market evolution: Electrical insulators (CN 854690) — 2015–2025

Introduction

This report examines the trade dynamics of CN 854690 — Electrical insulators (excl. those of glass or ceramics and insulating fittings) traded by the European Union with non-EU partners over the 2015–2025 period. This residual heading encompasses primarily plastic insulators (CN 85469010) and other non-glass, non-ceramic insulators (CN 85469090). Over the decade, EU exports grew in value from €240.2 million to €305.7 million (+27.3%), while imports surged from €114.0 million to €221.0 million (+93.9%). This asymmetric trajectory has eroded the EU's trade surplus and reshaped the competitive landscape in significant ways, as the following three sections explain.

1. An Eroding Surplus Driven by Import Volume Expansion

The EU has remained a net exporter, but its lead is narrowing

Throughout the period, the EU maintained a positive trade balance in electrical insulators. However, the surplus contracted sharply: from €126.2 million in 2015 to €84.6 million in 2025, a decline of 32.9%. The minimum recorded surplus was €66.4 million, highlighting the severity of the erosion.

Export value grew while volumes stagnated — a story of rising unit prices

EU export value rose 27.3% over the period, yet export quantity actually fell slightly by 1.8% (from 12,818 tonnes to 12,588 tonnes). This implies that virtually all export value growth was driven by price increases: the average export unit price climbed from €18,734/t to €24,275/t (+29.6%). European exporters thus extracted higher margins on roughly the same volume of output.

Imports surged on both volume and price dimensions, but volume was dominant

Unlike exports, EU imports doubled in quantity (+100.1%) and nearly doubled in value (+93.9%). Import unit prices actually edged down slightly (−3.1%), meaning the import boom was overwhelmingly volume-driven. The EU absorbed nearly 10,000 additional tonnes of insulators from non-EU sources in 2025 compared with 2015, at prices broadly comparable to a decade earlier. This pattern suggests structural import substitution rather than a temporary demand spike.

Net import reliance deepened despite the EU remaining a net exporter

The net import reliance indicator shifted from −4.1% in 2015 to −17.0% in 2025, with a trough of −28.9% recorded during the period. While negative values indicate a net exporter position, the deepening negative trend signals growing import penetration relative to domestic production. The trade intensity index more than doubled from 23.4% to 52.5%, and export propensity rose from 15.0% to 40.2%, indicating that the EU insulator sector has become far more integrated into global trade over the decade.

2. A Geographic Reconfiguration of Trade Partners

China became the dominant source of EU imports, displacing traditional suppliers

The most dramatic geographic shift occurred on the import side. Chinese exports of insulators to the EU grew by 224.6%, rising from €32.9 million to €106.7 million — making China by far the single largest import source by 2025, accounting for roughly 48% of total import value. India (+208.9% to €12.8 million) and Türkiye (+148.2% to €10.7 million) also saw explosive growth, reinforcing a broader shift toward Asian and emerging-market suppliers.

Export destinations shifted markedly, with Morocco emerging and Russia collapsing

On the export side, the most striking change was the growth of exports to Morocco, which surged by 570.4% from €4.9 million to €33.2 million — becoming the second-largest export destination. Exports to Russia collapsed by 87.1% (from €6.9 million to €0.9 million), almost certainly reflecting the impact of EU sanctions following Russia's invasion of Ukraine. Switzerland (+124.5% to €47.4 million) and the United States (+48.0% to €54.4 million) consolidated their positions as key premium markets.

Geopolitical and supply-chain shocks left visible marks in the data

The volatility analysis reveals several notable disruptions. UK import flows exhibited extreme volatility (coefficient of variation of 2.01), and Morocco's export flows were similarly erratic (CV 0.87), consistent with the sharp year-to-year swings visible in the data. A major price shock was detected in 2022 in EU exports to the United Kingdom, where prices jumped 45.8% with an abnormality score of 32.2. A price shock in imports from China was also flagged in 2021 (abnormality 25.0), coinciding with the global supply-chain disruptions of the post-pandemic period.

Import concentration intensified while export markets diversified

The Herfindahl-Hirschman Index (HHI) for imports by value rose from 1,844 to 2,703 (+46.6%), reflecting growing concentration on fewer — primarily Chinese — suppliers. By contrast, the export HHI declined slightly from 984 to 897 (−8.9%), indicating a modest broadening of destination markets. This divergence suggests that while the EU has successfully diversified its export base, it has simultaneously become more reliant on a concentrated group of import suppliers.

3. Domestic Production Under Pressure as Trade Patterns Shift

EU production of insulators has declined in both volume and value

According to PRODCOM production data, EU production of electrical insulators (excluding glass and ceramics) fell from 73,346 tonnes to 54,000 tonnes (−26.4%) and from €800 million to €660 million (−17.5%) in value terms. This contraction in the domestic manufacturing base is consistent with the simultaneous surge in import volumes, particularly from lower-cost Asian producers.

Plastic insulators are the primary growth category on the import side

The product segment breakdown shows that imports of plastic insulators (CN 85469010) grew from 5,376 tonnes to 11,050 tonnes in quantity and from €52.9 million to €114.9 million in value. The "other" category (CN 85469090) also expanded significantly in volume (from 4,418 to 8,547 tonnes) and value (from €61.1 million to €106.1 million). Together, these two subcategories account for the full doubling of EU import quantities.

Export composition tells a different story: plastics dominate in value, other materials gain in price

EU exports of plastic insulators remained the larger subcategory by value (€189.1 million in 2025 vs. €116.6 million for CN 85469090), and grew at 29.0% over the decade. However, the "other" category saw a far steeper rise in unit export prices, climbing from €15,095/t to €29,991/t — a 98.7% increase — suggesting that EU producers have moved toward higher-value, more specialised products in this segment.

Specialisation patterns suggest a fragmented European supply landscape

The specialisation analysis reveals that Bulgaria (RSCA 0.85), Portugal (0.80), Estonia (0.69), Austria (0.53), and Italy (0.30) are the most specialised EU producers of this product category. Meanwhile, Ireland, Luxembourg, Belgium, Greece, and Spain show negative specialisation scores, indicating they are net importers relative to their overall trade profile. The concentration of production capability in a handful of smaller or medium-sized EU economies, rather than in the largest manufacturing nations, is noteworthy and may reflect niche industrial capabilities.

European producer response: moving up the value chain

The combination of declining production volumes, surging import penetration from Asia, and rising export unit prices points to a classic pattern of competitive restructuring. European manufacturers appear to be ceding volume-driven, commoditised segments (particularly basic plastic insulators) to Asian competitors while consolidating their position in higher-value, technically demanding product niches. The 29.6% increase in average export prices versus the 3.1% decline in import prices underscores this price-quality divergence.

Conclusion

The EU's trade in electrical insulators (CN 854690) over 2015–2025 tells a story of intensifying global competition and structural adjustment. While the EU has remained a net exporter, its trade surplus has contracted by a third as imports — overwhelmingly from China, but also from India and Türkiye — have doubled in volume. Domestic production has declined by over a quarter, and import concentration has risen sharply, creating greater single-supplier dependency. At the same time, EU exporters have adapted by raising unit prices and diversifying destination markets, with notable gains in Switzerland, the United States, and Morocco. The sector is transitioning from one dominated by volume-based trade to one increasingly shaped by value-based differentiation, with European producers occupying the premium end of the market. Policymakers should monitor the growing import reliance on a narrow supplier base, particularly given the volatility and shock events documented in the data, which underscore the fragility of these trade flows.