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October 04, 2025

Steady increase in output, aiming at high-end products, increasing self-sufficiency in polystyrene in China

In recent years, China's polystyrene industry has experienced significant growth in both production and imports, establishing itself as one of the largest consumer markets globally. Starting from the 1980s, with the introduction of advanced foreign technology and equipment, the domestic polystyrene sector has continuously evolved and expanded. The production process has gradually transitioned from batch methods to more efficient continuous processes, leading to improved self-sufficiency. By 2004, over 30 polystyrene plants were operating in China, with a combined capacity of 2.35 million tons. Among them, Zhenjiang Chi Mei stood out as the largest producer, with an annual output of 360,000 tons. Other major players included Yangtze BASF (160,000 tons), Shantou Ocean First Polyphenylene Resin Company (135,000 tons), Chevron Phillips Chemicals (China) Co., Ltd. (110,000 tons), Styron (Asia) (100,000 tons), Quanzhou Ocean Polyphenyl Resin Company (96,000 tons), Total Petrochemical Sanshui Chemical Company (85,000 tons), Zhanjiang New Zhongmei Chemical Company (70,000 tons), Yanshan Petrochemical Company (52,000 tons), and Guangzhou Petrochemical Plant (46,000 tons). According to official data, China produced 2.298 million tons of polystyrene in 2004, while importing around 1.38 million tons. Over the previous five years, imports remained steady between 1.33 and 1.6 million tons, but declined after 2004. This led to a gradual increase in the self-sufficiency rate, rising from 34.8% in 2000 to 60.7% in 2004. Looking ahead, the polystyrene market in China is expected to grow at an average annual rate of about 8%. Demand is projected to rise from 3.87 million tons in 2004 to 4.1 million tons in 2005, and further to approximately 5.9 million tons by 2010. Meanwhile, production capacity is expected to reach 2.85 million tons in 2005 and 3.5 million tons by 2010. Despite this growth, China will still remain the world’s largest importer of polystyrene. Globally, the production capacity of polystyrene in developed countries has not increased significantly, with most new capacity coming from mainland China. Projects such as Shanghai Secco’s 500,000-ton-per-year styrene plant and 300,000-ton-per-year polystyrene facility, along with Huizhou Nanhai and Tianjin Petrochemical/Dow Chemical ethylene projects, are contributing to this expansion. By 2010, China’s polystyrene capacity is expected to reach 3.5 million tons annually, with an output of 3.15 million tons at 90% utilization. However, the supply of raw materials like styrene has developed more slowly in China. The country has become one of the world’s top consumers of styrene, but its production capacity remains low, leading to heavy reliance on imports. With several large-scale styrene plants coming online, capacity is expected to exceed 3 million tons per year by 2006, easing some supply-demand pressures. Nonetheless, the gap will persist, and rising oil prices will continue to exert cost pressure on the industry. In terms of consumption, electronics and electrical appliances account for the largest share of polystyrene use, at around 55%, followed by daily necessities (25%) and expandable polystyrene products such as food containers and packaging materials. Due to the high volume of processing and import-based manufacturing, the consumption structure is unlikely to change significantly in the near future. However, demand for electronic components and packaging materials is expected to grow rapidly. Despite progress, China’s polystyrene industry still lags behind global leaders in terms of product performance, quality, and scale. Domestic products are largely limited to general-purpose grades, while high-end and specialty resins remain underdeveloped. As a result, imported polystyrene dominates the high-value electronics sector, with most local products used for lower-grade applications. To strengthen the industry, the development of high-end products is essential, as it represents a profitable and growing segment that is currently dominated by foreign suppliers.

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