China Witnesses a 1.7% Decline in the Average Utilization of ABS Production
China Witnesses a 1.7% Decline in the Average Utilization of ABS Production

China Witnesses a 1.7% Decline in the Average Utilization of ABS Production

  • 23-Jan-2024 2:32 PM
  • Journalist: Bob Duffler

In the week concluding on January 19, the average capacity utilization at acrylonitrile butadiene styrene (ABS) plants in China experienced a decline of 1.7%. This reduction is notable when compared to the average load of ABS production in China as of January 12, resulting in a decrease to 66.8%.

An earlier report highlighted the recovery of Russian ABS plastics production in 2023, surpassing figures from 2021 after a decline in 2022. The production volume reached 22 thousand tons. South Korean supplies dominated this period, constituting 56% (12.5 thousand tons) compared to 54% (10.6 thousand tons) in the same timeframe in 2022. Following closely were imports from China, representing 30% (6.6 thousand tons) from January to August 2023. Taiwan contributed 13% (3 thousand tons) to the overall imports during this period.

The recent decline in average capacity utilization at China's ABS plants indicates a shifting dynamic within the country's production landscape. With a reduced utilization rate of 66.8%, manufacturers are likely adjusting their production levels in response to market conditions, demand fluctuations, or operational considerations.

In the broader context, the Russian ABS plastics sector's resilience and growth in 2023 underscore its recovery trajectory after facing challenges in the previous year. The surpassing of production figures from 2021 is a positive indication of the industry's rebound. This resilience aligns with the global dynamics of ABS, a versatile polymer widely used in various industries, including automotive, electronics, and consumer goods.

ABS imports into Russia during the first eight months of 2023 demonstrate a notable uptick, reflective of the industry's increased demand. The 12% year-on-year increase in imports, reaching 22.2 thousand tons, signifies a heightened reliance on foreign ABS sources to meet domestic requirements. South Korea's predominant role as a supplier is consistent with its strong presence in the global ABS market. The 2% increase in its share of supplies further solidifies its position.

Chinese imports, comprising 30% of ABS imports into Russia from January to August 2023, highlight China's continued role as a significant player in the global ABS trade. Despite the observed decline in capacity utilization within China's ABS plants, the country remains a key contributor to the international ABS market. Taiwanese imports, constituting 13% of the total, further diversify the sources of ABS for the Russian market.

The nuanced dynamics in China's ABS production, coupled with the resurgence of the Russian ABS plastics industry and the evolving patterns in ABS imports, paint a comprehensive picture of the global ABS market. These trends reflect the industry's adaptability, responding to market shifts, regional developments, and global demand. As the ABS landscape continues to evolve, stakeholders will closely monitor these indicators to gauge the trajectory of this crucial polymer in the international market.

Related News

ABS Market Enters April on a Steady Note after hikes in previous month in EU and Asia
  • 08-Apr-2024 2:59 PM
  • Journalist: Jai Sen
Asian ABS Market Sustains Strong Performance in the Mid-March 2024
  • 21-Mar-2024 3:48 PM
  • Journalist: Xiang Hong
INEOS Styrolution Showcases Sustainable ABS at Arburg Tech Days 2024
  • 19-Mar-2024 10:53 AM
  • Journalist: Emilia Jackson
LG Chem Ceases Operations at Styrene Monomer Plant
  • 13-Mar-2024 5:35 PM
  • Journalist: Harold Finch