China’s acrylonitrile-butadiene-styrene industry to be import dependent until 2022, says GlobalData
Published by Alex Hithersay,
Editorial Assistant
Hydrocarbon Engineering,
China will continue to be a net importer of acrylonitrile-butadiene-styrene (ABS) until 2022, primarily due to growing demand from the household appliances, electrical and electronics, automotive and industrial sector, says GlobalData.
The company’s report, ‘Acrylonitrile-Butadiene-Styrene (ABS) Industry Outlook in China to 2022 - Market Size, Company Share, Price Trends, Capacity Forecasts of All Active and Planned Plants’, forecasts that imports of ABS are expected to increase at a compound annual growth rate (CAGR) of 7.2% from 1.790 million tpy in 2017 to 2.531 million tpy in 2022.
Dayanand Kharade, Petrochemicals Analyst at GlobalData, explains: “The ABS industry in China is expected to grow with increasing demand from the household appliances, electrical and electronics, automotive and industrial sector. China is likely to continue to be a net importer, importing around one third of its demand during the forecast period.”
GlobalData reveals that the demand value for ABS is expected to grow at a CAGR of 6% from US$9.6 billion in 2017 to US$12.9 billion in 2022. The average price of ABS is forecast to increase at a CAGR of 2.5% from US$1875.8/t in 2017 to US$2122.9/t in 2022. China ABS imports as percentage of demand is forecast to increase from 34.9% in 2017 to 41.7% in 2022.
According to the report, ABS plant capacity in China is expected to increase from 3.730 million tpy in 2017 to 3.880 million tpy in 2022, at a CAGR of 0.8%. The largest ABS plants in China are Ningbo LG Yongxing Chemical Co. Ningbo ABS Plant, Formosa ABS Plastics Ningbo ABS Plant, Zhenjiang Chimei Chemical Zhenjiang ABS Plant 2, Jilin Petrochemical Co. Jilin ABS Plant 2, and Tianjin Dagu Chemical Co. Tianjin ABS Plant.
The country’s major companies are Chi Mei Corp., China National Petroleum Corp., Formosa Plastics Group, LG Chem Ltd and Tianjin Daxie Chemical Co. Ltd. Together they accounted for 77.3% of the ABS capacity in 2017.
Kharade concludes: “Household appliances, electrical and electronics, automotive and industrial sector, which together accounted for 95.1% of the ABS demand in the country last year, will continue to drive the Chinese ABS imports over the next five years.”
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/02112018/chinas-acrylonitrile-butadiene-styrene-industry-to-be-import-dependent-until-2022-says-globaldata/
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