China's ABS market has always been in short supply, and it is the world’s largest importer. Export volume has been declining for several consecutive years. Although last year's export volume stopped falling, but the self-sufficiency rate is still less than 40%, and there is more room for improvement. However, during the “Eleventh Five-Year Plan†period, the production of ABS resin will face four major problems: raw material supply, environmental protection constraints, technological competition, and standards integration. Therefore, domestic companies must first break through these bottlenecks if they want to seize the ABS market opportunities.
Rapid development of industrial development In recent years, the rapid development of China's ABS industry, foreign companies have also invested to build factories in China, the rapid expansion of production capacity. South Korea LG Chemical Company's ABS production plant in Ningbo Ningbo LG Zhaoxing Chemical Company, in September 2006, expanded its annual production capacity from 300,000 tons to 480,000 tons; Shanghai Gaoqiao Petrochemical Company, 200,000 tons/year ABS The plant was put into operation in Shanghai Chemical Industry Park (漕泾) in mid-January of 2007. The ABS plant has three production lines with a capacity of 75,000 tons per year. As of January 2007, ABS resin manufacturers reached 10, and the production capacity has reached 1.8 million tons/year; in 2006, the output was 1,278,500 tons, which was more than 3 times of 391,000 tons in 2001.
Demand space is still huge
Although the production capacity of ABS resin in China has grown rapidly, it still cannot meet the actual domestic production demand, and it has to import large quantities every year. China's ABS demand and imports have both ranked first in the world, and have become the world’s largest importer of ABS. In 2006, the import dependency was 61.54%.
Compared with several other general plastic raw materials, China's ABS resin exports have been at a relatively low level, and exports have continued to decline in 2004 and 2005. Although exports have increased substantially in 2006, the overall export volume has basically been related to 2002. Flat. According to statistics, in 2006, China exported nearly 20,000 tons of ABS resin, a year-on-year increase of 37.5%, and imported nearly 2.02 million tons, a slight increase of 1.6% year-on-year. According to statistics, Hong Kong, China, is the most important export destination for ABS resin in Mainland China. In 2006, China exported a total of 15,000 tons of ABS resin to Hong Kong, a year-on-year increase of 49.4%, accounting for more than 80% of total exports. Although the volume of exports has increased significantly, the absolute amount is still at a relatively low level.
It is estimated that the total production capacity of ABS resin in China will reach 3 million tons in 2010, but the total market demand will reach 3.9 million tons by that time. Even if domestic production equipment is fully loaded, the output still cannot meet actual demand. Therefore, in the next few years, the business opportunities for the ABS resin market in China will remain large.
The four bottlenecks urgently need to be broken However, experts pointed out that if manufacturers want to seize market opportunities, they must solve the four serious problems that ABS resin will face:
First, the supply of raw materials. During the “Eleventh Five-Year Plan†period, although PetroChina and Sinopec will build or expand a number of styrene and acrylonitrile plants, most of them also arrange downstream projects such as polystyrene, styrene-butadiene rubber, and acrylic fiber, which can be used by ABS resins. Raw materials are very limited, and most companies still need a lot of imports. As the petrochemical industry has entered a period of high oil prices, the quantities and prices of raw materials styrene, acrylonitrile, butadiene will become the bottleneck for the development of ABS resin. In the future, the expansion and construction of new ABS units should take into consideration the supply of raw materials and supply issues. Under the conditions of rapid growth in production capacity and demand, the stable supply of raw materials will become a key issue for ABS resin manufacturers in the future.
Second, environmental protection constraints. Recently, the European Union proposed that production companies should undertake the obligation to recycle used electronic products and plastics in household appliances. In the production process, not only waste water and waste gases need to be treated, but also discharge standards, and ABS resins must be protected from flame retardants and other additives (including Heavy metals, halogens) Environmental pollution. This will undoubtedly increase the production costs and increase the corporate social responsibility.
Third, technology competition. The challenge of traditional bulk process technology to conventional processes, modified PP and high-impact PS, and other challenges to traditional products make it impossible for manufacturers to continue to develop all kinds of special materials, expand the scope of use, and reduce costs so as to avoid difficulties.
Fourth, standard convergence. In the era of globalization of trade, our products must move closer to international standards and gradually be brought into line with international standards, so as to break through the limitations of foreign technical trade barriers on our products.
Rapid development of industrial development In recent years, the rapid development of China's ABS industry, foreign companies have also invested to build factories in China, the rapid expansion of production capacity. South Korea LG Chemical Company's ABS production plant in Ningbo Ningbo LG Zhaoxing Chemical Company, in September 2006, expanded its annual production capacity from 300,000 tons to 480,000 tons; Shanghai Gaoqiao Petrochemical Company, 200,000 tons/year ABS The plant was put into operation in Shanghai Chemical Industry Park (漕泾) in mid-January of 2007. The ABS plant has three production lines with a capacity of 75,000 tons per year. As of January 2007, ABS resin manufacturers reached 10, and the production capacity has reached 1.8 million tons/year; in 2006, the output was 1,278,500 tons, which was more than 3 times of 391,000 tons in 2001.
Demand space is still huge
Although the production capacity of ABS resin in China has grown rapidly, it still cannot meet the actual domestic production demand, and it has to import large quantities every year. China's ABS demand and imports have both ranked first in the world, and have become the world’s largest importer of ABS. In 2006, the import dependency was 61.54%.
Compared with several other general plastic raw materials, China's ABS resin exports have been at a relatively low level, and exports have continued to decline in 2004 and 2005. Although exports have increased substantially in 2006, the overall export volume has basically been related to 2002. Flat. According to statistics, in 2006, China exported nearly 20,000 tons of ABS resin, a year-on-year increase of 37.5%, and imported nearly 2.02 million tons, a slight increase of 1.6% year-on-year. According to statistics, Hong Kong, China, is the most important export destination for ABS resin in Mainland China. In 2006, China exported a total of 15,000 tons of ABS resin to Hong Kong, a year-on-year increase of 49.4%, accounting for more than 80% of total exports. Although the volume of exports has increased significantly, the absolute amount is still at a relatively low level.
It is estimated that the total production capacity of ABS resin in China will reach 3 million tons in 2010, but the total market demand will reach 3.9 million tons by that time. Even if domestic production equipment is fully loaded, the output still cannot meet actual demand. Therefore, in the next few years, the business opportunities for the ABS resin market in China will remain large.
The four bottlenecks urgently need to be broken However, experts pointed out that if manufacturers want to seize market opportunities, they must solve the four serious problems that ABS resin will face:
First, the supply of raw materials. During the “Eleventh Five-Year Plan†period, although PetroChina and Sinopec will build or expand a number of styrene and acrylonitrile plants, most of them also arrange downstream projects such as polystyrene, styrene-butadiene rubber, and acrylic fiber, which can be used by ABS resins. Raw materials are very limited, and most companies still need a lot of imports. As the petrochemical industry has entered a period of high oil prices, the quantities and prices of raw materials styrene, acrylonitrile, butadiene will become the bottleneck for the development of ABS resin. In the future, the expansion and construction of new ABS units should take into consideration the supply of raw materials and supply issues. Under the conditions of rapid growth in production capacity and demand, the stable supply of raw materials will become a key issue for ABS resin manufacturers in the future.
Second, environmental protection constraints. Recently, the European Union proposed that production companies should undertake the obligation to recycle used electronic products and plastics in household appliances. In the production process, not only waste water and waste gases need to be treated, but also discharge standards, and ABS resins must be protected from flame retardants and other additives (including Heavy metals, halogens) Environmental pollution. This will undoubtedly increase the production costs and increase the corporate social responsibility.
Third, technology competition. The challenge of traditional bulk process technology to conventional processes, modified PP and high-impact PS, and other challenges to traditional products make it impossible for manufacturers to continue to develop all kinds of special materials, expand the scope of use, and reduce costs so as to avoid difficulties.
Fourth, standard convergence. In the era of globalization of trade, our products must move closer to international standards and gradually be brought into line with international standards, so as to break through the limitations of foreign technical trade barriers on our products.
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