China is increasing its plastics exports in 2025, putting downward pressure on prices in Asia and putting pressure on Japanese producers.

In 2025, Chinese exports of plastic products continue to trend upward, causing a significant drop in prices in the Asian market and generating strong competition for manufacturers in Japan, Taiwan, and other regional economies.

According to an analysis by Nikkei Asia, during the first half of the year, export volumes of commercial-grade plastic resins such as polyvinyl chloride (PVC), polyethylene (PE), and polystyrene (PS) increased significantly. In some cases, volumes doubled, while unit export prices fell by up to 20%.

Polystyrene: Accelerated Growth with Falling Prices

According to the General Administration of Customs of China, polystyrene exports between January and June doubled compared to the same period last year. Although volume remains modest and China remains a net importer of this material, growth is significant.

The unit price fell 19% to $1,142 per metric ton, indicating that the country is expanding its presence in the international market through an aggressive pricing strategy.

PVC and Pressure on Japan and Taiwan

PVC also showed strong growth: exports increased by 49%, while the unit price fell by 9%. This phenomenon is partly explained by the decline in Chinese domestic demand due to the real estate crisis. As a result, Japanese and Taiwanese manufacturers that traditionally exported to markets such as India and Vietnam now face direct competition from lower-priced Chinese suppliers.

Polypropylene and New Production Capacity

Meanwhile, exports of polypropylene (PP), used in packaging and auto parts, grew 21%, accompanied by a 3% drop in unit price. China has increased its production capacity through new plants that convert propane into propylene. This expansion led the country to move from a trade deficit in 2024 to a surplus of 330,000 tons in 2025.

Polyethylene: Still Dependent on Imports

Although polyethylene exports increased 14%, imports were 11 times higher. More than 15% of imports come from the United States, where it is produced at low cost thanks to shale gas. Trade uncertainty has led to strong import demand in China, with a 14% increase in foreign purchases between January and April 2025.

Japan: Rising Imports and Pressure on Local Industry

Japanese imports of synthetic plastics are also showing an upward trend. In particular, purchases of PVC and polystyrene grew by more than 50% year-on-year, driven by the re-export of plastic products from countries such as South Korea, Taiwan, and Thailand, which are saturated by surplus Chinese production.

Direct imports from China also increased significantly:

Polystyrene: +57%

Polyethylene: +31%

Polypropylene: +18%

Quality, Costs, and Market Imbalances

Despite low prices, doubts persist about the quality of some Chinese products. A Japanese buyer in the plastic film sector (whose name was not revealed) stated that, after evaluating offers from Chinese suppliers, they decided not to finalize contracts due to concerns about product consistency.

Furthermore, Japanese manufacturers face high domestic production costs due to the high price of gasoline and the weak yen, which increases logistics and labor costs. This situation has widened the gap between imported plastics prices—governed by global supply and demand—and domestic prices—determined by negotiations based on production costs.

Given weak domestic demand, both from the construction sector and general consumption, the entry of low-cost imported plastics into the Japanese market is expected to continue, further pressuring the local industry.