China’s PS exports surge while import reliance continues to decline in H1 2026

China's polystyrene (PS) market continued its structural transformation during the first half of 2026, with imports falling to their lowest level on record and exports reaching a new historic high. The trend highlights the country's growing production strength and expanding role as a key global supplier, supported by ongoing capacity additions and improving export competitiveness.

During January-June 2026, China imported slightly more than 200,000 tons of PS, including EPS, GPPS, and HIPS, representing an 8% decline compared with the same period last year. This marks the smallest first-half import volume since records began in 2000, reflecting the country's steadily shrinking dependence on overseas material. Import spending also eased by around 2% year on year to approximately $249.67 million. Malaysia remained the largest supplier, contributing about 28% of China's total PS imports.

Exports, meanwhile, continued to expand rapidly. Overseas shipments crossed the 500,000-ton mark for the first time in any first-half period, rising roughly 40% from a year earlier. Export earnings also showed remarkable growth, climbing to nearly $662.29 million, almost double the value recorded in the first half of 2025. The strong increase reflects both higher shipment volumes and healthy overseas demand for Chinese-origin PS.

Vietnam remained the biggest destination for Chinese PS exports, accounting for around 15% of total shipments. Thailand followed with a 10% share, while Brazil absorbed about 8%. Poland and South Korea also ranked among the leading export markets, highlighting China's growing presence not only across Asia but also in distant international markets.

China's transition into a major PS exporter has accelerated significantly over the past two years. Although the country briefly became a net exporter in 2013, exports have consistently exceeded imports since early 2025. This momentum strengthened further in the second quarter of 2026, resulting in a record net export surplus of nearly 299,000 tons during the first six months of the year.

Another notable shift emerged in the product mix. For the first time, exports of GPPS and HIPS each exceeded EPS shipments by around 3%, indicating that export growth is becoming increasingly diversified rather than relying mainly on EPS.

The expansion has been supported by significant investments in domestic production. Nearly 990,000 tons per year of new GPPS and HIPS capacity was added across 2024 and 2025, while additional capacity entered production in early 2026. More projects are expected to come online before year-end, further strengthening China's manufacturing base.

With domestic production continuing to outpace local demand growth, China is expected to increase its PS exports further in the coming years. Rising availability of GPPS and HIPS is likely to enhance the country's competitiveness in global markets, increasing pressure on traditional exporters, particularly across Asia.

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