Polystyrene Margins Collapse: From ¥490 Profit to ¥550 Loss – Who Ate the PS Profit?

China’s polystyrene (PS) producers have seen a stunning reversal of fortunes. Not long ago, the average PS margin was around +¥490 per ton, but now producers are suffering roughly a ¥550 per ton loss, according to industry reports . This sharp swing – from healthy profits to significant losses – prompts the question: who swallowed the PS industry’s profits? Analysts point to surging feedstock costs (styrene monomer and benzene) and an inability to pass on those costs amid weak demand. Essentially, upstream raw material suppliers and energy costs have eaten the margin, while downstream plastic product demand remains soft, preventing price hikes. The result is that PS manufacturers are squeezed between high input costs and low selling prices. The once-robust profitability (when costs were lower) has evaporated. This dramatic margin collapse underscores the challenging environment for PS – the profit that was “earned” has indeed been devoured by upstream cost pressures and oversupply in the market.