Introduction:
In 2026, the pace of capacity expansion in the unsaturated polyester resin (UPR) industry gradually slowed, but supply growth continued to outpace downstream demand growth, further widening the market's supply–demand gap. Despite the export sector's continued strength, domestic downstream end-use consumption kept declining, and overall UPR demand showed little momentum for recovery through the year. The following annual review of key events documents the critical changes and milestones in the UPR industry in 2026.
1. Earnings Decline Amid Capacity Expansion; Industry Profit Hits Five-Year Low
Based on H1 2026 data, China's UPR industry has reached a historic turning point. Chempricehub monitoring shows that production gross profit in the industry continued to trend downward in the first half, with average profitability falling to RMB 285/ton—the lowest level since 2021. As a comparison, the industry's average gross profit in H1 2025 was RMB 725/ton, down 60.69% year-on-year and marking a low not seen since 2022. In 2026, industry earnings retreated in a stepwise manner: average production gross profit in January was RMB 322/ton, plunging 58.29% month-on-month, before falling to RMB 338/ton in June, an interim low for the first half. Against the backdrop of persistently rising raw material prices, the industry's average gross profit for the first half came to just RMB 285/ton overall. The core cause of this profit decline lies in the confluence of three factors: sustained capacity expansion on the supply side, persistently weak demand, and substantial increases in raw material costs. This marks the formal entry of China's UPR industry into a profitability trough—a downward cycle under a loose supply–demand balance.
On the price front, the H1 market followed a "decline first, then rise" trajectory, with price fluctuations reaching their widest range in recent years. In January, as the year opened, movements along the industrial chain were limited, and the mainstream negotiated reference price for 196# resin in East China held at RMB 7,800–7,900/ton. In February, the market fluctuated weakly, with prices edging lower. March saw sharp swings: UPR prices climbed from RMB 8,000/ton to above RMB 10,500/ton at one point—a gain of more than 31%—while the industry's average gross profit narrowed accordingly. In April, prices retreated in choppy trading after the spike, with the price center shifting gradually downward. In May and June, after a period of market deadlock, prices moved broadly higher once again. As of the week of July 29, the industry's weekly gross profit had contracted to RMB -153/ton, keeping margins under sustained pressure. Although both prices and profits rebounded somewhat in June, the H1 average price and overall industry profitability remained significantly weaker than in the same period of 2025—the lowest in nearly five years.
2. In H1 2026, Prices of Key Raw Materials—Styrene, Maleic Anhydride, Phthalic Anhydride, and Diethylene Glycol—Rose 10%, 41%, 31%, and 94% YoY, Respectively
In H1 2026, prices of the four major UPR raw materials rose significantly versus the same period of 2025. Styrene increased by RMB 795/ton, or 10% year-on-year; maleic anhydride rose by RMB 2,310/ton, or 41%; phthalic anhydride gained RMB 2,050/ton, or 31%; and diethylene glycol posted the most prominent increase, climbing RMB 4,370/ton, or 94%. The sharp rise in feedstock prices provided strong cost support for UPR producers. However, although UPR prices continued to track upward, their increases fell short of feedstock price gains, gradually pushing producers from profitability into losses.
3. Fangxin Resin (Anhui) Co., Ltd. Commences Trial Production
At 8:18 a.m. on July 16, 2026, a milestone moment arrived at Fangxin Resin (Anhui) Co., Ltd.: the production boiler was successfully ignited and brought up to temperature on the first attempt, and all production raw materials were charged in an orderly manner in strict accordance with standardized process procedures. The entire operation ran smoothly, with all process parameters meeting specifications. The successful one-shot boiler ignition and material charging marked the official full entry of Fangxin Resin's Anhui production base into the trial production phase, representing a decisive achievement in the project's construction. The Fangxin Resin (Anhui) project officially broke ground on May 22, 2024, and has now spanned a full two years to reach this stage. The project consists of two phases in total, with Phase I UPR capacity of 253,000 tons per year.
4. UPR Exports Hit a New Record High
In H1 2026, China's UPR imports totaled 6,000 tons, a mid-to-low level by historical standards. On the export side, shipments continued to grow, with cumulative January–June exports reaching 134,300 tons, up 48.18% year-on-year. Exports to key trading partners Vietnam and Thailand rose 29.37% and 77.56% year-on-year, respectively. Of this total, general trade exports amounted to 133,200 tons, accounting for 99.16% of total exports, down 0.16% from the same period last year. By destination, Vietnam remained the largest export market at 32,600 tons, up 29.37% year-on-year, while exports to Thailand grew 77.56%.
The above changes can be attributed to several factors. First, China's UPR capacity is still in an expansion phase, and total capacity now far exceeds that of any other country. At the same time, the industry's scale of operation and feedstock technology have continued to improve, significantly strengthening the cost competitiveness of domestic producers and keeping domestic market prices well below those of imported products. In addition, the steadily improving quality of domestically produced UPR has exerted strong competitive pressure on imported materials on both price and quality fronts. Second, with the domestic spot market trending higher in the first half, the arbitrage space between domestic and overseas markets narrowed, and importers' willingness to take delivery picked up. Third, intensifying competition in the domestic market prompted export-oriented companies to actively expand overseas, particularly increasing their efforts in Southeast Asia and countries along the Belt and Road, driving a marked increase in export volumes.
Looking ahead, as China's UPR capacity expansion proceeds in tandem with industry upgrading, domestically produced products will further strengthen their position in the domestic market. Net imports of UPR are expected to continue declining, while net exports will keep rising.
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