China ABS Capacity Expansion Began to Accelerate

The ABS units ran at high loads in 2017 backed by the strong demand and high profits. The good fundamentals stimulate the pace of capacity expansion. In the future, the number of new ABS projects are expected to increase significantly.

The ABS capacity in China was 3,798kt/a in 2017. In the peak season, the supply can’t meet the demand. 

At present, there are 12 ABS producers in China. The capacity of ABS at Ningbo LG Yongxing Chemical and Zhenjiang Chi Mei Chemical is 800kt/a respectively, ranking first. Trinseo Polymers (Zhangjiagang) is the new producer. The company transformed its 120kt/a PS unit into 80kt/a ABS unit. The newly added ABS capacity in China was small from 2014 to 2017. 

The capacity expansion slowed down from 2013. However, the ABS profits surged in recent years, which would stimulate more capacity to be put into use. It is estimated that till the end of 2018, the ABS capacity will reach 4,248kt/a in China.