Acrylonitrile Butadiene Styrene (ABS) is a thermoplastic resin manufactured by co-polymerizing acrylonitrile (AN), butadiene (BD) and styrene (S) monomers. ABS copolymers exhibit better toughness, temperature stability and solvent resistance properties in comparison to high impact polystyrene. ABS compounds are commercially available in many forms and grades including medium and high impact, high gloss, UV stabilized, flame retardant, heat resistant, low gloss, glass-fibre reinforced and transparent.
In terms of ABS demand by application, the automotive segment dominates the market. ABS is used for the manufacturing of automotive panels, wheel covers, dashboard components, pillar trim, door liners & handles, seat backs, etc. The growing demand for lightweight & high-performance plastics in the automotive industry to provide efficiency is driving the ABS market during the forecast period. The electrical and electronics industry is witnessing a rise in the demand for Acrylonitrile Butadiene Styrene (ABS) owing to its diverse range of properties. These properties include its superior flame resistance, robust structural strength, and ability to provide impact resistance and toughness through multiple formulations. Additionally, ABS s high resistance to various corrosive materials, including water, salts, food acids, and inorganic acids, makes it a highly sought-after material for electrical insulation applications.
In Asia Pacific, the average trade price of ABS was estimated to be approximately $2/kg, showing a 15% growth compared to the previous year. The surge in Asia's ABS prices is attributed to the higher costs of the primary raw material used in ABS production, which is styrene monomer. China is the major importer of ABS with annual average quantity of around 1800 thousand tons between 2016-2021, mainly originating from Taiwan, South Korea, Malaysia, Thailand, and Japan. Taiwan exports more than 700 thousand tons of ABS to China and these exports are expected to continue in the coming years, as China s manufacturing sector continues to grow and demand for high quality ABS continues to increase. India has been a net importer of ABS. The imports in 2021 are more than 120 thousand tons with average export prices of $2/kg. Bhansali Engineering Polymers Ltd. and INEOS Styrolution India Ltd. together account for 62% of India’s ABS demand, rest is met by imports mostly from South Korea.
The increasing demand for lightweight vehicles is expected to drive the ABS market in the forecast period. The growing population and the increasing purchasing power is driving the ABS market. ABS is used in the automotive industry for bumpers, exterior panels, dashboards, etc. The demand for light weight vehicles is increasing because they help in boosting the fuel efficiency of the vehicles, which lowers the CO2 emissions. ABS is widely used in the automotive industry because of their excellent properties such as high impact strength, chemical resistance, high strength, and low density.
Recent developments in ABS market
In Q3 2021, Toray started commercial production of 75 thousand tons ABS plant at Penang, Malaysia. The new ABS facility has boosted capacity to 500 thousand tons from 425 thousand tons including Japan’s production capacity. The new plant in Malaysia will chiefly produce transparent ABS resins that is used in application such as electrical appliances, office automation equipment, home appliances, and other miscellaneous goods.
In the first half of 2021, Zhangzhou CHIMEI Chemical began the first phase of construction on a 450 thousand tons ABS plant in the Gulei Port Economic Development Zone in Zhangzhou, Fujian. The company plans to add an additional 150 thousand tons in the coming years.
In 2020, INEOS announced plans to build a 600 thousand tons greenfield ABS plant in Ningbo, China, which is expected to become operational by 2024.
Supreme Petrochem Limited is in the process of setting up a mass ABS production plant with a capacity of 140 thousand tons at their Amdoshi facility in India. The first phase of the plant, with a capacity of 70 thousand tons of ABS, is expected to be completed in the first half of 2024, with the remaining 70 thousand tons expected to be operational by 2025.
LG Chem has invested around $382 million to upgrade its equipment and expand its ABS production capacity at its Yeosu plant. By 2024, LG Chem aims to increase the size of its ABS production facility and incorporate energy-efficient technologies. The company s objective is to set up an ABS production line with a capacity of 220 thousand tons while phasing out its older line with a capacity of 140 thousand tons.
Bhansali Engineering Polymer is the largest ABS producer in India with installed capacity of more than 130 thousand tons followed by INEOS with production capacity of around 115 thousand tons annually. Bhansali Engineering Polymer is further planning to expand the production capacity by 70 thousand tons to cater to the growing demand of ABS from consumer goods, automotive and electronics industries in India. The capacity addition is expected to be completed by the end of 2024.
Need help
How can we help you?
Reach us with your research requirements and we shall provide the optimum solution to suit your needs.