Regarding ABS production. Thank you!

Analysis of the current status of ABS resin production and consumption at home and abroad. ABS resin is a major thermoplastic engineering plastic, which is synthesized by copolymerizing more than 50% styrene along with appropriate amounts of butadiene and acrylonitrile. It possesses the gloss, electrical properties, and processability of polystyrene ； The toughness and low-temperature impact resistance of polybutadiene ； Polyacrylonitrile, with its weather resistance, heat resistance, and chemical resistance, is widely used in industries such as automobiles, home appliances, communication equipment, and daily necessities. ABS is the variety among styrene-based resins that has developed and changed the fastest. Its improved performance, combined with relatively low cost, gives it undeniable advantages over other resins. 1 Analysis of World ABS Resin Production and Consumption 1.1 Global Production Status of ABS Resin Since BorgWarner Chemicals in the United States succeeded in producing ABS using the emulsion grafting method in 1954, various companies adopted this technology and established factories; at the same time, they worked hard to develop their own technologies, leading to rapid progress in the production and technology related to ABS resin. Currently, about 60 companies in 28** and regions around the world produce ABS resin. In 1998, the world’s ABS production capacity was 5,550 kt/a, of which the United States had a production capacity of 855 kt/a ； Western Europe’s ABS production capacity is 640 kt/a ； Japan’s ABS production capacity is 791 kt/a ； Taiwan, China, has an ABS production capacity of 1,420 kt/a, while South Korea has an ABS production capacity of 869 kt/a. In 1999, the total global production capacity for ABS resin was 6,204 kt/year, with Asia accounting for 60.0% of this capacity, North America for 17.0%, Western Europe for 15.7%, and other regions for 7.3%. Taiwan Province of China is the largest ABS production region in the world; in 1999 its production capacity was 1,420 kt, accounting for 22.89% of the world’s total production capacity ； The United States is the world’s second-largest producer of ABS; in 1999 its production capacity was 1,028 kt, accounting for 16.57% of the world’s total production capacity ； South Korea and Japan rank third and fourth in the world in terms of ABS production capacity, with capacities of 869 kt/a and 790 kt/a respectively, accounting for 14.01% and 12.73% of the world’s total production capacity. In 1999, the world production of ABS resin was approximately 3,800 kt. Taiwan, China, is the largest producer of ABS in the world; its production volume in 1999 was 1,016 kt, accounting for 26.74% of the world’s total production ； South Korea came in second, with a production volume of 784 kt, accounting for 20.63% of the world’s total production ； The United States ranks third, with a production volume of 705 kt for ABS and SAN (styrene-acrylonitrile copolymers) ； Fourth in Japan, with a production volume of 543 kt. In 2000, the world’s ABS resin production capacity was 6,987 kt/a, of which Asia accounted for 4,649 kt/a, representing 66.5% of the global total ABS resin production capacity ； The United States accounts for 1,181 kt/a, representing 16.9% of the world’s total ABS resin production capacity ； Western Europe: 1,022 kt/a, accounting for 14.6% of the world’s total ABS resin production capacity. In 2000, the world’s ABS resin production was 5,025 kt, with an operating rate of 72%; of this amount, 3,463 kt came from Asia, accounting for 68.9% of the world’s total production ； U.S. production was 1,113 kt, accounting for 22.14% of the world’s total production ； Western Europe accounted for 747 kt, representing 14.86% of the world’s total production. 1.2 Analysis of global ABS resin consumption: In 1999, the world’s demand for ABS was 3,752 kt, while in 2000 it was 3,898 kt. The demand in various regions of the world is shown in Table 1. Table 1 ABS demand by region in the world, in kt. Region: 1998, 1999, 2000. Demand volume, %; Demand volume, %; Demand volume, %. North America: 637, 18.0; 670, 17.8; 693, 17.7. Central and South America: 80, 2.3; 86, 2.3; 93, 2.4. Western Europe: 640, 18.0; 665, 17.7; 692, 17.7. Eastern Europe: 40, 1.1; 42, 1.1; 42, 1.1. Middle East and India: 70, 2.0; 83, 2.2; 95, 2.4. East Asia and South Asia: 2044, 57.6; 2164, 57.7; 2243, 57.6. Oceania: 20, 0.6; 21, 0.6; 22, 0.6. Africa: 15, 0.4; 21, 0.6; 18, 0.5. Total: 3546, 100.0; 3752, 100.0; 3898, 100.0. Asia is the largest region in terms of ABS consumption; in 1999, its consumption was 2,164 kt, accounting for 57.7% of the world’s total consumption. In 1999, the consumption of ABS in the United States was 568 kt. Its main areas of use were the automotive industry, appliances, construction materials, and electronics and electrical equipment, with these sectors accounting for 22.7%, 21.8%, 13.9%, and 9.5% of the total consumption respectively. In 1999, consumption in Western Europe was 646 kt, with the automotive industry being the largest consumer sector, using 180 kt of ABS, which accounted for 27.9% of total ABS consumption ； Next are electronic and electrical products, which consume 130.20 kt of ABS, accounting for 20.2% of the total consumption ； The third consumption sector is appliances, which consume 127.9 kt of ABS, accounting for 19.8% of the total consumption; furniture and pipes consume 15.9 kt and 27.2 kt of ABS respectively, while other sectors consume 101.2 kt of ABS. In 1999, Japan consumed 393.3 kt of ABS, with the main areas of consumption being daily necessities, electronics and electrical appliances, general machinery, and automobiles; the consumption amounts in these areas were 145.2 kt, 98.4 kt, 89.8 kt, and 59.9 kt respectively. 2 Production Status and Consumption Analysis of ABS Resin in China 2.1 Production Status of ABS Resin in China China began producing ABS resin in 1970, and its development has been slow. In 2001, China’s ABS production was less than 450 kt. The vast majority of ABS resin produced in our country is of general-purpose type; other grades such as high-quality and specialty ABS resins are not fully available, and their production volume is relatively low. Although several high-heat-resistant, high-impact-resistant, and flame-promoting types of ABS resins, as well as new alloy types such as ABS/PC and ABS/PVC, have been developed in China, they are only produced in small batches and cannot meet the various demands of the market. Table 2 lists the existing ABS production facilities in our country. Table 2: ABS resin production facilities in China – Production capacity in kt/a, manufacturers, production processes, and notes. Lanzhou Petrochemical Company: 50 kt/a; production via emulsion-grafted suspended SAN blending; capacity increased to 50 kt/a in 2000. Takahashi Petrochemical Company: 20 kt/a; production via emulsion-grafted suspended SAN blending; technology from U.S. Steel Corporation. Jihua Group Corporation: 100 kt/a; production via emulsion-grafted suspended SAN blending; technology from Nippon Synthetic Rubber Company. Daqing Petrochemical Company: 50 kt/a; production via emulsion-grafted suspended SAN blending; technology from Korean Weiyuan Oil Company. Panjin Ethylene Industry Company: 50 kt/a; production via emulsion-grafted suspended SAN blending; technology from Korean Shinhu Oil Chemical Company. Ningbo Yongxing Chemical Co., Ltd.: 50 kt/a; production via emulsion-grafted suspended SAN blending. Zhenjiang Guoheng Co., Ltd.: 40 kt/a; production via emulsion-grafted suspended SAN blending; technology from Taiwanese Guoqiao Company. 125 kt/a; production via emulsion-grafted suspended SAN blending; technology from Taiwanese Chi Mei Company. In 2000, China’s total ABS production capacity reached 485 kt/a ； In April 2000, Changzhou Plastics Group and Changzhou Xingang Economic Development Co., Ltd. jointly invested in a project to produce ABS engineering plastics at a capacity of 100 kt/a. The first phase of this project, with a capacity of 50 kt/a, came online at the end of 2001. In addition, another ABS production facility with a capacity of 125 kt/a was built by Formosa Plastics in Zhenjiang and brought into operation as well. By 2001, China’s ABS production capacity had reached 660 kt. Currently, LG Chem plans to expand the capacity of the ABS production facility at Ningbo Yongxing Chemical Plant by 6 times, bringing it to 300 kt/a ； Once the 250 kt/a ABS plant built by Taiwan’s Chi Mei Corporation in Zhenjiang goes into operation, it will proceed with the construction of a second phase with a capacity of 500 kt/a, bringing the company’s production capacity on the Chinese mainland to 1,000 kt/a. By then, the apparent demand for ABS is expected to reach 1,500 kt. 2.2 Trends in the Consumption of ABS Resin in China The consumption of ABS in China is highly concentrated in electronic and electrical accessories, accounting for around 77% of the total ABS consumption. The main application areas include household refrigerators, electric fans, household washing machines, televisions, radios, tape recorders, telephones, office equipment, and other household appliances ； Secondly, light industrial products such as toys are also areas that consume a large amount of ABS resin. As for the growth in ABS consumption, transportation is a promising sector, but it faces many constraints as well. Table 3 shows the current status and forecast of China’s ABS consumption structure. Table 3: Current status and forecast of China’s ABS consumption structure
Product use | 2000 | 2005 | Average annual growth rate, % | Consumption volume | Percentage | Consumption volume | Percentage
Cars | 40 | 2.3 | 63 | 2.7 | 9.7
Motorcycles | 55 | 2.1 | 64 | 2.8 | 2.9
Electronics/electrical appliances | 1363 | 77.4 | 1760 | 76.1 | 5.2
Computers | 102 | 5.8 | 213 | 9.2 | 15.9
Telephones | 55 | 3.1 | 67 | 2.9 | 4.1
Refrigerators/freezers | 110 | 6.2 | 140 | 6.1 | 4.9
Electric fans | 77 | 4.4 | 75 | 3.2 | -0.6
Washing machines | 43 | 2.4 | 60 | 2.6 | 6.7
Television sets | 180 | 10.2 | 200 | 8.7 | 2.1
Air conditioners | 37 | 2.1 | 52 | 2.2 | 7.3
Vacuum cleaners | 30 | 1.7 | 33 | 1.4 | 1.9
DVD players | 8 | 0.5 | 12 | 0.5 | 7.0
Microwaves | 5 | 0.3 | 7 | 0.3 | 7.0
Radios | 66 | 3.8 | 69 | 3.0 | 1.0
Other electrical appliances | 650 | 36.9 | 832 | 36.0 | 5.1
Light industrial products | 303 | 17.2 | 425 | 18.4 | 7.0
Total | 1761 | 100.0 | 2312 | 100.0 | 5.6
It is expected that China’s ABS resin consumption structure will undergo significant changes in the coming years. In the electronics and electrical appliances sector, the growth rate of household appliances such as televisions and washing machines has slowed down, while among large-scale appliances, those experiencing faster growth include computers, air conditioners, and copiers. In the transportation sector, although ABS resin accounts for a small proportion in the automotive industry in our country, as the automotive industry is developed as a key sector, consumption of cars and motorcycles will increase significantly, and thus the demand for ABS resin will also rise. Therefore, high-impact, heat-resistant ABS for the automotive industry, sheet-grade ABS for refrigerators, and flame-retardant ABS for computers will become new areas of demand growth in the future. In the electronics and electrical appliances sector, the main end products that consume ABS are televisions, refrigerators, electric fans, telephones, computers, and washing machines. ABS is mainly used in the casings, control panels, and decorative elements of these products. In 2000, the consumption of ABS in this sector was 1,363 kt, accounting for 77.4% of the total annual ABS consumption. With the development of the IT industry, computers, mobile phones, and related products have seen rapid growth. In 2000, China’s production of microcomputers reached 8.6 million units, a figure that represented more than a doubling compared to the previous year; the demand for ABS reached 102 kt. At the same time, with the continuous emergence of new products, the demand for ABS in small household appliances is also on the rise. With economic development and the improvement of people’s living standards, it is expected that demand for computers, air conditioners, and copiers in our country will continue to grow rapidly in the future, serving as a new driving force for the increase in ABS resin consumption ； The demand for ABS resin in refrigerators and telephones will grow steadily ； The proportion of ABS resin used in electric fans and radios will decrease. According to projections, China’s television production is expected to reach 40 million units in 2005, remaining at the current level ； It is estimated that there will be 26 million air conditioners ； The number of computers is estimated to be 18 million. The demand for ABS resin in China’s electronic and electrical products is growing at an annual rate of 5.2%, and it is expected to reach 1,760 kt by 2005. With the progress and development of technology, electronic and electrical products are becoming increasingly smaller and more diverse. The applications of ABS resin in the field of small appliances are also expanding continuously. Major products include calculators, food processors, electric shavers, pagers, mobile phones, chargers, hair dryers, etc. The consumption of ABS resin in the field of small electrical appliances was estimated at 650 kt in 2000, accounting for 36.9% of the total ABS consumption; this figure was expected to reach 832 kt by 2005, with an average annual growth rate of 5.1%. In the automotive industry, ABS resin is primarily used in components such as car and motorcycle dashboards, wheel covers, radiator grills, air conditioners, trunks, and handles. The total output of the automobile industry was 1.578 million units in 1997, 1.628 million units in 1998, 1.830 million units in 1999, and 2.07 million units in 2000; the number of vehicles in use exceeded 16 million units. Among individual vehicles, the type that uses the highest amount of ABS resin is the bus, with a consumption of 15 kg per vehicle ； Next are sedans, with a consumption of 10 kg per vehicle ； The weight of trucks is around 2.5 kg per vehicle. In 1999, the consumption of ABS in the automotive industry was 35 kt in total. According to forecasts for the development of the automotive industry, automobile production in 2005 is expected to reach 3.2 million units. The total number of motor vehicles in use will be between 23.55 million and 25.45 million, of which 9.05 million to 9.56 million will be trucks ； Buses: 4.5 million. 4.9 million ； Sedans: 8.43 million to 9.09 million units. Although ABS resin faces competition from polypropylene and polyethylene in the automotive industry, with the development of China’s automobile industry, particularly as European and American automakers increase their investments in China and as energy-efficient and lightweight materials for vehicles are utilized more extensively, the amount of ABS used per vehicle in China’s automotive sector is set to rise, indicating potential demand. It is estimated that 63 kt of ABS resin will be needed in 2005, of which 24 kt will be used for production and 39 kt for maintenance purposes. In recent years, motorcycle production in our country has developed rapidly, with its output ranking first in the world; the average annual growth rate during the \"Eighth Five-Year Plan\" period was as high as 53.2%. In 1999, China’s motorcycle production reached 10.6948 million units, a year-on-year increase of 16.1%. In 2000, China consumed 55 kt of ABS for motorcycles, of which 20 kt was used for repairs. It is estimated that in 2005, China’s motorcycle production will reach 13 million units, consuming 64 kt of ABS, of which 36 kt will be used in production and 28 kt for maintenance purposes. Products that consume ABS in the light industry mainly include luggage, toys, and sheets. China is a major exporter of toys and luggage. According to Chinese customs statistics, the export value of toy products in 1999 reached $7.7 billion. A large amount of ABS resin is used in the production of video game consoles, toy musical instruments, toy models, and other similar products ； Plastic luggage exports generated $2.5 billion in foreign exchange. In 1998, the global sales volume of the toy industry (traditional toys and playthings) totaled 67.8 billion dollars, and it is estimated that the world toy market’s sales volume will reach 100 billion dollars by 2005. 　　 It is estimated that by 2005, the consumption of ABS in light industrial products will reach 425 kt. 2.3 Analysis of China’s Import and Export of ABS Resin: With the rapid development of China’s national economy, the demand for ABS resin has been increasing steadily, and China has now become the world’s largest consumer of ABS resin. However, domestic production accounts for only about 30% of total consumption, so a large amount of ABS resin must be imported from abroad each year. In 1999, according to China’s customs statistics, the import volume of ABS resin reached 1,333.6 kt, an increase of 260 kt compared to the previous year, representing a growth rate of 24% ； In 2000, imports of ABS resin set another record, reaching 1,469.4 kt. The main reasons for the significant increase in imports include the impact of the economic recovery in Asia and the excessively low operating rates of ABS manufacturers in our country. In 2001, the total imports of ABS resin amounted to 1,426 kt, showing a slight year-on-year decline. The main reason for this decrease was the higher operating rate of domestic plants, which led to an increase in production volume. The volume of ABS trade between various regions of the world was approximately 1,800 kt in 1998, and rose to about 2,000 kt in 1999. China is the most important player in the global ABS trade, accounting for over 60% of the total trade volume. The combined imports of ABS by other Asian countries account for approximately 10% of the world’s total trade volume. The United States comes in third place, with its ABS imports making up about 5% of the global trade volume. Taiwan Province of China, South Korea, and Japan are essentially net exporters. These three regions account for over 75% of the world’s ABS exports. In particular, the export volume of ABS resin from Taiwan Province of China has exceeded 700 kt. The main sources of ABS imports for our country are Taiwan Province, Japan, and South Korea, which account for over 80% of the total imports. The largest share comes from Taiwan Province, accounting for about 45% ； The import share of Japan and the United States is declining year by year, while that of South Korea and Thailand is increasing gradually. The main import region is Guangdong, accounting for 80% of the total domestic imports. The mode of import trade is mainly processing under contract, which accounts for around 90% of the total imports. The import situation of ABS resin in China is shown in Table 4. Table 4 Import Situation of ABS Resin in China by Region: 1998, 1999, 2000, 2001
Import volume/kton, %; Import volume/kton, %; Import volume/kton, %; Import volume/kton, %
Taiwan, China: 458.8, 42.85; 605.1, 45.37; 719.0, 48.9; 668.5, 46.9
Japan: 165.0, 15.41; 182.9, 13.72; 136.6, 9.30; 116.0, 8.1
South Korea: 232.2, 21.68; 306.3, 22.97; 369.7, 25.16; 405.8, 28.5
Malaysia: 88.1, 8.23; 101.8, 7.63; 107.9, 7.34; 110.7, 7.8
United States: 29.6, 2.76; 0, 0.00; 11.0, 0.75; 7.8, 0.5
Thailand: 61.8, 5.77; 86.9, 6.52; 99.1, 6.74; 90.1, 6.3
China**: 7.4, 0.69; 7.7, 0.58; 7.9, 0.54; 7.3, 0.5
Singapore: 8.2, 0.77; 2.6, 0.19; 1.9, 0.13; 2.3, 0.2
Others: 19.7, 1.84; 40.3, 3.02; 16.3, 1.11; 17.5, 1.2
Total: 1070.8, 100; 1333.6, 100; 1469.4, 100; 1426.0, 100

Suggestions for the Development of China’s ABS Resin Industry:
(1) Increase production capacity. It is estimated that by 2005, China’s apparent demand for ABS resin will reach 2,170 ktons. However, the current production capacity of existing and under-construction ABS manufacturing facilities in China is far from sufficient to meet this high demand. Therefore, our country should increase its ABS production capacity in the future to raise self-sufficiency and alleviate the increasingly severe supply-demand imbalance. However, in this process, it is necessary to fully take into account the reality that the production capacity in the world today, especially in neighboring **regions, is already severely excessive; this will have a significant impact on the domestic ABS resin market. In such a market environment, when building new facilities, it is essential to consider the competitiveness of future products and to develop products with high added value. (2) Concentrate research efforts on developing new products. With China’s accession to the WTO and the integration of the domestic market with the international one, it is necessary to develop specialized grades with good quality, low costs, and high stability that meet market demands, based on existing manufacturing processes. These include heat-resistant, sheet-form, flame-retardant, weather-resistant, and high-gloss ABS materials, in order to change the current situation of low-quality products and a limited variety of products available in the country. At the same time, we also lack a set of technologies developed through our own research in China to support the construction of large-scale ABS plants. (3) Adjusting the product structure: The consumption pattern of ABS resin in China differs significantly from that in the United States, where applications in the automotive industry account for 23% of total ABS consumption. In our country, ABS consumption is primarily focused on various household appliance accessories, while the automotive industry still holds untapped potential. As the automobile manufacturing industry becomes a pillar of the national economy, China’s automobile manufacturing sector is set to experience rapid development, and the automotive industry will surely become a new source of growth for ABS demand. Manufacturers should seize the opportunity to adjust their product mix.

Help: SBS production operating procedures, thank you

Production of ABS resin and its market prospects at home and abroad http://info.feno.cn/2007/110306/c000044459.shtml ABS resin (acrylonitrile-butadiene-styrene copolymer), also known as acrylonitrile butadiene styrene rubber, is the variety among styrene-based resins that has seen the most development and changes. Styrene imparts rigidity, electrical properties, processability, and surface gloss to the resin ； Butadiene imparts toughness and low-temperature impact resistance to the resin ； Acrylonitrile endows the resin with chemical resistance, weather resistance, heat resistance, and tensile strength. Due to the combination of these three components, which complement each other, ABS resin possesses excellent comprehensive properties such as heat resistance, high surface hardness, dimensional stability, good chemical and electrical resistance, as well as ease of molding and mechanical processing. It is widely used in industries such as electronics and electrical appliances, instrumentation, automobiles, building materials, and consumer goods. In recent years, with the rapid growth of China’s national economy, the production and consumption of ABS resin have also seen swift development. However, at present, China’s production capacity and output of ABS resin are not sufficient to meet the actual needs of domestic manufacturing, resulting in large-scale imports every year; thus, there is great potential for further development and utilization of this material. 　　1 Production method of ABS resin ABS resin was developed based on the modification of polystyrene resin. In 1947, the United States Rubber Company (USR) was the first to achieve industrial production of ABS resin using the blending method. This method is simple in process, but the resulting products have poor aging resistance and processing properties; it has since been phased out. In 1954, the American company Borg-Warner Chemicals carried out graft polymerization of acrylonitrile and styrene in polybutadiene latex to produce emulsion-grafted ABS resin, thereby achieving industrial production for the first time. The successful development of the ABS resin production process using the emulsion grafting method laid a solid foundation for the subsequent growth of the ABS resin industry. After that, countries such as the United Kingdom, France, Germany, and Japan introduced ABS resin production technologies and built factories, and developed their own ABS resin production technologies based on these imported technologies. 　　Currently, the industrial production methods for ABS resin can be classified into 3 categories based on technical approaches: chemical grafting method, chemical grafting blending method, and physical blending method. Among them, the chemical grafting methods are divided into three types: emulsion grafting, continuous bulk grafting polymerization, and emulsion grafting-bulk polymerization ； The chemical graft blending method is divided into three types: emulsion grafting–emulsion SAN (acrylonitrile–styrene copolymer resin) blending, emulsion grafting–suspended SAN blending, and emulsion grafting–in-situ SAN blending ； The physical mixing method uses ABS powder and SAN pellets as raw materials, and an extruder is employed to mix them together in order to produce ABS resin; it falls under the category of plastic processing and does not belong to traditional ABS production methods. Currently, the emulsion grafting method and the emulsion grafting–emulsion SAN blending method have been phased out in developed ** ； The emulsion grafting-in-situ polymerization method is not widely used because it requires modifying the in-situ polymerization formulation in order to produce products of different grades ； The emulsion grafting–suspended SAN blending method is only suitable for small and medium-sized production facilities. Therefore, at present, the main methods for the industrial production of ABS resin are the emulsion grafting—bulk SAN blending method and the continuous bulk polymerization method. 　　1.1 Emulsion grafting–bulk SAN blending method The emulsion grafting–bulk SAN blending method was developed on the basis of the emulsion grafting technique; it is currently the most widely used production process for ABS resin both domestically and internationally. It mainly consists of steps such as the synthesis of the main latex used for grafting, the graft copolymerization of this main latex with styrene and acrylonitrile, the synthesis of the bulk SAN copolymer, and the blending of the ABS graft copolymer with SAN resin. 　　The advantages of producing ABS resin using the emulsion grafting–bulk SAN blending method are: the synthesis of SAN is relatively simple, and it causes less pollution ； The rubber content in ABS, as well as the molecular weight and content of SAN, can be effectively controlled, enabling the production of ABS resins with excellent comprehensive properties, particularly high toughness and rigidity ； The process is flexible and adjustable, with a wide range of product grades and broad application areas. The future development direction of this process is to improve the quality of the latex, reduce the reaction residence time, and increase the particle size of the latex. 　　1.2 Continuous Bulk Polymerization Method The continuous bulk polymerization method was put into industrial production by the Japanese company Toray in the mid-1980s, and it is a production process that has seen rapid development in recent years. It is similar to the continuous bulk process used for producing high-impact polystyrene (HIPS), with the main difference being the addition of acrylonitrile monomer in the reaction. The continuous bulk polymerization method mainly includes processes such as sol formation, prepolymerization, polymerization, devolatilization, and granulation. A certain amount of polybutadiene rubber is dissolved in a proportionally prepared mixture of styrene and acrylonitrile monomers, along with a small amount of solvent; this mixture is continuously fed into a fully mixed flow reactor to induce a phase transition. Further reaction takes place in multiple piston flow reactors, during which grafting reactions also occur. Once the conversion rate of the material reaches approximately 75%, it is sent to a degasifier, where the unreacted styrene, acrylonitrile monomers, and solvent are flashed off for recovery and reuse. The molten material is then granulated to produce the final ABS resin product. The structure of the aforementioned reactor is basically the same as that of reactors used for the bulk polymerization of HIPS and SAN; therefore, the continuous bulk polymerization production line for manufacturing ABS resin can also be used for the production of ordinary polystyrene, high-impact polystyrene, and SAN. 　　The advantage of producing ABS resin using continuous bulk polymerization is that the process flow is simple, requiring only one set of bulk polymerization equipment ； It is easy to operate, causes little pollution, and requires low investment. There is a trend abroad to develop this process. However, due to the limitations of the bulk polymerization process itself, it is not possible to produce products with a rubber content of over 20%; as a result, the impact strength of the ABS produced by this method is limited, and controlling the particle size of the rubber proves to be quite difficult. Moreover, high gloss levels cannot be achieved, unlike those obtained using the emulsion grafting–bulk SAN blending method. Therefore, the range of ABS resin products produced using the continuous bulk polymerization method is relatively narrow. The research and development focus of this process is on the distribution and size control of rubber particles in order to achieve higher impact resistance and gloss. 　　A comparison of the advantages and disadvantages of producing ABS resin via emulsion grafting–bulk SAN blending method and continuous bulk polymerization method is shown in Table 1. 　　2 Current Production Status and Market Prospects of World ABS Resin 　　2.1 Current Production Status 　　Since the 1990s, the production of ABS resin worldwide has seen significant development. In 1995, the total global production capacity for ABS resin was only 4.2 million tons per year; this figure increased to 6.3 million tons per year in 2002, reached 7.171 million tons per year in 2004, and further rose to around 7.476 million tons per year in 2005. The production capacity in North America was 0.976 million tons per year, accounting for approximately 13.06% of the world’s total ABS resin production capacity ； The production capacity in South America is 100,000 t/year, accounting for approximately 1.34% of the total production capacity ； The production capacity in Western Europe is 1.275 million tons per year, accounting for approximately 17.05% of the total production capacity ； The production capacity in Eastern Europe is 120,000 t/year, accounting for approximately 1.61% of the total production capacity ； The production capacity in the Asia-Pacific region is 5.005 million tons per year, accounting for approximately 66.95% of the total production capacity. Chimei Corporation in Taiwan Province of our country is currently the largest AB$ producer in the world, with a production capacity of 1.15 million tons per year (including the capacity located on the Chinese mainland), accounting for approximately 15.38% of the world’s total ABS resin production capacity ； Followed by Germany’s BASF company, Germany’s Bayer company (now part of Lanxess), and the U.S.-based GE Advanced Materials company, whose production capacities account for approximately 12.11%, 8.90%, and 8.56% of the world’s total ABS resin production capacity, respectively. The main manufacturers of world ABS resin in 2005 are shown in Table 2. 　　2.2 Current Consumption Status and Future Prospects In recent years, the global demand for ABS resin has been growing at an average annual rate of around 5.0%. The Asia-Pacific region, particularly the Chinese mainland, is the main driver of growth in ABS resin consumption. In 2005, the global total demand for ABS resin was approximately 5.54 million tons, a decrease of about 2.0% compared to 2004. Of this amount, around 53.9% was used in household appliances and products, 10.5% in the automotive industry, 4.0% in office equipment, 2.2% in pipes and pipe fittings, and 29.4% for other purposes. Among them, the AB$ resin used in the consumption of home appliances and related products is primarily applied to computers and their accessories, as well as to the doors and interiors of refrigerators and freezers ； The ABS resin used in automotive applications is primarily used in the form of blended alloys in automotive components and car audio systems. 　　The consumption patterns of ABS resin vary across different regions of the world. In Western Europe, ABS resin is primarily used in the automotive, appliance, and telecommunications industries; in North America, it is also used in the construction sector (for pipes). In Japan and South Korea, it is mainly used in the automotive industry, while in other countries in the Asia-Pacific region, it is primarily utilized in appliances, telecommunications, and toys. In the Asia-Pacific region, except for Japan where there are special grades, ABS resins are generally of standard types, whereas in Western Europe and North America there are a large number of high-performance, customized ABS resin products. It is estimated that the total global demand for ABS resin in 2009 will reach approximately 7.51 million tons. Of this amount, 4.27 million tons will be used in household appliances and related products, 850,000 tons in the automotive industry, 250,000 tons in office machinery, 150,000 tons in pipes and fittings, and 1.99 million tons in other applications. These figures represent 56.9%, 11.3%, 3.3%, 2.0%, and 26.5% of the total ABS resin consumption respectively. The automotive industry remains the sector with the fastest growth rate for ABS resin use, followed by the electrical appliance industry. 　　Currently, the main trading regions for ABS resin worldwide are Asia, North America, and Western Europe. In 2005, the combined trade volume of these three regions accounted for approximately 92.5% of the total global trade in ABS resin. Of these, Asia accounts for approximately 63.6%, North America for about 7.8%, and Western Europe for around 21.1%. Asia’s share of global trade volume is on the rise year by year. Except for Asia, ABS resin is in short supply in other parts of the world. In 2005, the net export volume of ABS resin from Asia was approximately 250,000 tons, and it is expected that Asia will remain the main exporter of ABS resin worldwide in the coming years. 　　3 Current Production Status and Market Prospects of ABS Resin in China 3.1 Current Production Status The development of ABS resin in China began in the 1960s. In 1975, the Synthetic Rubber Plant of Lanzhou Petrochemical Company built China’s first ABS resin production facility using the emulsion grafting method, with an annual production capacity of 2,000 tons. In 1978, the chemical plant of Shanghai Gaqiao Petrochemical Company built an ABS resin production facility with a capacity of 2,000 tons per year, using its own developed emulsion grafting-emulsion SAN blending process. However, until the early 1980s, the production of ABS resin in our country progressed very slowly, with an annual output of only around 3,000 tons, which was far from sufficient to meet the growing demands of the domestic market; almost all of the products had to be imported. To accelerate the production of ABS resin in our country, in 1982 the Synthetic Rubber Plant of Lanzhou Petrochemical Company introduced the emulsion grafting–suspended SAN blending process from Mitsubishi Rayon Company of Japan, and built an ABS resin production facility with a capacity of 10,000 tons per year. In 1983, the chemical plant of Shanghai Gaqiao Petrochemical Company introduced the emulsion grafting-emulsion SAN blending process from United States Steel Corporation (USS), and built an ABS resin production facility with a capacity of 20,000 tons per year. At the end of 1986, the Synthetic Resins Plant of Jilin Petrochemical Company introduced the emulsion grafting-in-situ SAN blending production process developed by Japan’s Toyo Engineering Corporation–Mitsui Toyo Corporation (TEC-MTC), and built an ABS resin production facility with a capacity of 10,000 tons per year. In 1993, Daqing Petrochemical Complex introduced the emulsion grafting–bulk SAN blending process from South Korea’s Hanam Chemical Company, and built an ABS resin production facility with a capacity of 50,000 tons per year. The gradual commissioning of these imported facilities greatly contributed to the development of ABS resin in China. 　　In the late 1990s, as China’s market was further opened up to the outside world, the ABS resin manufacturing industry experienced rapid development. South Korea’s LC Chemical Company, in a joint venture with Ningbo in Zhejiang Province, established Ningbo Yongxing LG Chemical Co., Ltd. Using an emulsion grafting–bulk SAN blending production process, a ABS resin production facility with an annual capacity of 50,000 tons was built in July 1998; the production capacity was increased to 150,000 tons per year in 2002, and reached 300,000 tons per year by 2005 ； Jiangsu Zhenjiang Chi Mei Company, jointly established by Taiwan’s Chi Mei Corporation, Mitsubishi Chemical, Zhongqing Raw Materials, and Dagang Development Company, adopts an emulsion grafting–bulk blending production process; it built a production facility with an annual capacity of 250,000 tons of ABS resin in 2000 ； Jiangsu Zhenjiang Guoheng Company, a wholly-owned subsidiary of Formosa Plastics Corporation Taiwan, adopted the emulsion grafting-bulk SAN blending method to construct an ABS resin production facility with a capacity of 40,000 tons per year in August 1998 ； In 2003, Jiangsu Changzhou Plastic Group Company built a new production facility for ABS resin with an annual capacity of 100,000 tons ； In 2004, China Taiwan Chemical Fiber (Ningbo) Company built a production facility for ABS resin with an annual capacity of 150,000 tons. By the end of 2005, there were 9 manufacturers of ABS resin in China, with a total production capacity of 1.28 million tons, accounting for approximately 17.12% of the world’s total ABS production capacity. The main production processes employed were emulsion grafting–bulk SAN blending and emulsion grafting–suspended SAN blending. Among them, the 300,000 t/year ABS resin production facility of LG Yongxing Chemical Co., Ltd. in Ningbo, Zhejiang, is currently the largest ABS resin production facility in China, accounting for approximately 23.44% of the country’s total ABS resin production capacity. The main producers of ABS resin in China in 2005 are shown in Table 3. 　　As the production capacity of ABS resin in our country continues to expand, so does its output. In 1995, China’s production of ABS resin was only 40,400 tons; by 2000, it had risen to 299,000 tons. Between 1995 and 2000, the average annual growth rate of production was 49.2% ； In 2004, China’s production of ABS resin was approximately 600,000 tons, representing an increase of about 9.1% compared to 2003 ； The production volume in 2005 reached approximately 750,000 tons, an increase of about 25.0% compared to 2004. The average annual growth rate of ABS resin production from 2000 to 2005 was around 20.19%. 　3.2 Forecast for Production Capacity Growth In recent years, with the continuous development of our country’s electrical and automotive industries, the demand for ABS resin has been increasing steadily. However, the current production capacity and output of ABS resin are not sufficient to meet these demands. As a result, many manufacturers both domestically and internationally are planning to build new production facilities or expand existing ones. 　　LG Chem plans to expand the ABS resin production facility in Ningbo from 300,000 tons per year to 450,000 tons per year; this facility is set to come online in the second half of 2006. Additionally, the company intends to build a new ABS resin production facility with an annual capacity of 200,000 tons in Daya Bay, Huizhou, Guangdong, with completion and operation expected in 2008 ； Taiwan’s Delta Company will invest $100 million in Zhuhai to build a production facility for AB$ resin with an annual capacity of 150,000 tons ； Xinhu (Changzhou) Petrochemical Co., Ltd. plans to expand its existing production capacity of 100,000 t/a to 200,000 t/a in 2006 ； After the 250,000 t/year ABS resin plant that Chi Mei Corporation in Taiwan, China, plans to build in Zhenjiang comes online, the company intends to proceed with the construction of a second phase involving an additional 500,000 t/year capacity, thereby bringing its total production capacity on the Chinese mainland to 1,000,000 t/year ； China Taiwan Sinopec plans to form a joint venture with Sinopec to build an ABS resin plant with a capacity of 100,000 tons per year in Caojing, Shanghai ； China Taiwan Chemical & Fiber (Ningbo) Co., Ltd. plans to expand the production capacity of its existing facilities to 250,000 t/a ； BASF plans to build a production facility with an annual capacity of 160,000 tons in our country ； Bayer is considering building a 100,000 t/a ABS resin production facility in our country ； Formosa Petrochemical Corporation of Taiwan, China, plans to expand its production capacity to 250,000 t/a in 2006. 　　Sinopec Gaoqiao Petrochemical Company plans to adopt the continuous bulk polymerization process technology provided by Dow Chemical Company of the United States. It will invest 1.56 billion yuan to build a new ABS resin production facility with an annual capacity of 200,000 tons. Construction of the project has already begun, and it is expected to be completed and put into operation in the second half of 2006 ； Sinochem International’s 60,000 t/a ABS resin project in the Taicang Industrial Park has already commenced construction; by 2010, its production capacity is expected to reach 500,000 t/a ； PetroChina Jilin Petrochemical Company’s Synthetic Resins Plant plans to build another unit with a capacity of 300,000 t/a, on top of its existing production capacity of 180,000 t/a ； Panjin Ethylene Industry Company plans to expand its current production capacity of 50,000 t/a to 150,000 t/a ； Daqing Petrochemical Complex plans to expand the production capacity of its existing facilities to 120,000 t/year ； Tianjin Dagu Chemical Company plans to build a new production facility with an annual capacity of 200,000 tons in 2008. It is estimated that by 2006, China’s total production capacity for ABS resin will reach around 1.8 million tons per year, and by 2010 this capacity will be around 3.4 million tons per year. 　　3.3 Imports and Exports
In recent years, although China’s production capacity and output of ABS resin have been growing rapidly, they still fail to meet actual production demands. As a result, large quantities must be imported each year, and the volume of imports continues to rise annually. According to customs statistics, China’s imports of ABS resin were 803,900 tons in 1995, rising to 1,469,000 tons in 2000; the average annual growth rate of imports from 1995 to 2000 was approximately 12.8% ； In 2003, China’s import volume of ABS resin was 1.7901 million tons, accounting for approximately 77.19% of the total domestic consumption ； In 2004, imports rose to 1.963 million tons, accounting for approximately 76.59% of total domestic consumption, an increase of about 9.66% compared to 2003 ； In 2005, imports reached 1.987 million tons, an increase of about 1.22% compared to 2004. This figure accounted for approximately 72.22% of the total domestic consumption. From 2000 to 2005, the average annual growth rate of imports was around 6.22%. 　　The import of ABS resin to the Chinese mainland mainly comes from Taiwan Province of China, Japan, South Korea, Malaysia, and Thailand. In 2004, 1.891 million tons of ABS resin were imported from these five regions, accounting for approximately 96.4% of the total imports ； In 2005, imports from these 5 regions totaled 1.8872 million tons, accounting for approximately 94.98% of the total imports. Of this amount, imports from Taiwan Province of China accounted for about 45.82% of the total imports, those from South Korea accounted for around 32.16%, those from Japan accounted for approximately 6.41%, those from Malaysia accounted for about 6.10%, and those from Thailand accounted for 4.48% of the total imports. The import statistics of ABS resin in the Chinese mainland from 2001 to 2005 are shown in Table 4. 　　At present, the main forms of import trade for ABS resin in our country are processing under contract and processing with supplied materials; in 2005, the imports under these two forms accounted for approximately 85.1% of the total imports. Meanwhile, the proportion of imports under general trade further declined, accounting for only about 10.2% in 2005. Coastal regions such as Guangdong, Zhejiang, and Shanghai are the main import areas for AB$ resin in China. In 2005, imports of ABS resin through the ports of Guangdong accounted for approximately 75.0% of the total imports, followed by Zhejiang and Shanghai, which together accounted for 5.0% and 4.5% of the total imports respectively. 　　While importing, China also exports a small amount of ABS resin products. The export volume was 20,000 tons in 2002, 21,000 tons in 2003, 20,000 tons in 2004, and 14,000 tons in 2005, representing a year-on-year decrease of approximately 30.0%. 　　3.4 Consumption
3.4.1 Supply and demand
In recent years, with the rapid development of the home appliance and automotive industries, the consumption of AB$ resin in China has been increasing rapidly. The supply and demand situation of ABS resin in China from 1995 to 2005 is shown in Table 5. 　　3.4.2 Consumption Structure In China, ABS resin products are largely used in electronic/electrical accessories such as refrigerators, televisions, telephones, office equipment, and other small household appliances, accounting for about 80% of the total consumption. Toys and automotive parts each account for 10%. In recent years, the focus of China’s ABS resin consumption market has been gradually shifting, and the rise of industries such as automotive and electronics is set to bring about new changes in the market landscape for ABS resin. For many years, home appliances have accounted for a high proportion of ABS resin consumption in our country, but currently this share is showing a gradual downward trend. Due to an oversupply in the domestic market for home appliances such as televisions and washing machines, coupled with the penetration and substitution of materials like modified polypropylene, the consumption of ABS resin in the large-scale home appliance market is declining. Meanwhile, the use of ABS resin in consumer markets such as small home appliances, office equipment, and the transportation industry is on the rise. The application of ABS resin in the transportation industry is also expected to hold great potential. The significant acceleration in the production and consumption of automobiles and motorcycles will make automotive interior products a new growth driver for the ABS resin market. Additionally, recreational products such as yachts and mobile homes have opened up new market opportunities for ABS resin. Furthermore, ABS resin has good market prospects in applications such as building materials like pipes and fittings, medical devices, and alloy blends. 　　3.4.3 Forecast Driven by the upgrading of consumption patterns among China’s residents, as well as the development of export processing trade and the automotive industry, it is estimated that the average annual growth rate of demand for ABS resin in China will be around 9.0% from 2005 to 2010. From 2010 to 2015, this average annual growth rate is expected to be around 6.0%. By 2010, the annual demand for ABS resin in China’s market is projected to reach approximately 3.9 million tons ； The total demand in 2015 will reach approximately 4.9 million tons. 　　3.5 Market Price In recent years, the market price of ABS resin in China has experienced significant fluctuations. Prices dropped from their peak in 1995 all the way to the end of 1998; in 1999 they began to rise slowly. By the second half of that year, as oil prices on the international market continued to climb, the price of ABS resin also increased. The sharp drop in international oil prices in 2001, along with slow global economic growth, led to a decline in the market price of ABS resin as well. In 2002, although the price of AB$ resin fluctuated several times, it showed an overall upward trend, with prices in the fourth quarter being about 15% higher than those in the first quarter. In 2003, like other synthetic resin products, ABS resin saw its average price rise by 14.5% compared to 2002, driven by a strong recovery in the world economy and rising prices of raw materials. Entering 2004, the market price of AB$ resin continued to rise; the average price in the first half of the year was 12,500 yuan per ton, and it rose to 15,000 yuan per ton by November. After that, the price started to fall, dropping to 14,000 yuan per ton in December. In 2005, like many other chemical products, the market price of ABS resin gradually increased due to rising international crude oil prices. The price was 13,500 yuan per ton in January; it rose to 14,600 yuan per ton in March, and reached its highest level of 16,000 yuan per ton in April. Thereafter, the price gradually declined, standing at 14,800 yuan per ton in July. From August to October, the price remained relatively stable, ranging between 15,100 and 15,500 yuan per ton. From November to December, the price dropped to between 14,750 and 15,000 yuan. It is expected that the market price of ABS resin will decline in the coming period as international crude oil prices gradually fall. 　　4 Existing Problems 　China has become one of the largest producers and consumer markets for ABS resin in the world. Market demand is expected to continue growing faster than production capacity, but the underlying risks cannot be underestimated, being constrained by various factors. 　　4.1 Excessive dependence on external sources for raw material supply 　China faces a significant shortage of the three basic raw materials used in the production of ABS resin: acrylonitrile, butadiene, and styrene. A disruption in the supply chain for any of these raw materials will have a serious impact on production (however, as China’s ethylene industry develops, the supply of these raw materials is expected to improve to some extent). 　　4.2 The Impact of Alternative Products Modified polypropylene, high-impact polystyrene, polyvinyl chloride, and other materials with significant price advantages can pose a threat to certain end markets for ABS resin. 　　4.3 High oil prices will persist Pressure from raw material costs will continue to affect the industry’s existing profit margins for a long time. 　　4.4 Competition from Products in Neighboring ** or Regions At present, ABS resin products in the Chinese mainland are facing fierce competition from products in neighboring ** or regions. The first factor is the pressure from products from Taiwan, China. At present, the total production capacity of ABS resin in Taiwan is around 2.54 million tons per year, of which about 1 million tons per year is produced on the Chinese mainland. Various manufacturers are striving to gain a foothold in this market, which forces manufacturers of ABS resin on the mainland to reduce prices in certain areas. In addition, a large amount of smuggled products poses a significant threat to these manufacturers ； Second is the potential pressure from other regions; overall, there is an excess capacity for ABS resin production in the United States and Western Europe. Manufacturers from these regions will surely expand their operations into the Asian market. They possess advanced production technologies, large-scale facilities, lower production costs, as well as advantages in terms of product quality and a wide range of products available ； On the other hand, Asia’s **ABS resin production capacity in countries such as South Korea, Japan, Malaysia, and Thailand will also be excessive, which will inevitably exert greater competitive pressure on China’s mainland ABS resin market. For mainland Chinese enterprises to achieve leapfrog development, they must seize the current favorable opportunities to narrow the gap, enhance their advantages, and further capture the market. 　　5 Development Recommendations (1) Build new production facilities to expand capacity and increase the level of self-sufficiency in products At present, the growth rate of ABS resin production in China lags far behind the pace of increasing market demand; the current output is not sufficient to meet actual production needs, resulting in large-scale imports each year. The self-sufficiency rate is only around 23%. Therefore, in the future, it is necessary to increase the operating rate of existing production facilities while also considering the construction of several additional ABS resin production units with a capacity of over 200,000 tons per year. This will help to further expand production capacity and raise the level of self-sufficiency, thereby addressing the increasingly severe supply-demand imbalance for ABS resin in China. However, it is essential to fully take into account the reality that the production capacity of ABS resin in the world today, especially in the regions surrounding our country, is already excessive, and decisions must be made carefully. 　　(2) Selecting a reasonable production process route 　　The current industrial production methods for ABS resin mainly include emulsion grafting–bulk SAN blending and continuous bulk polymerization. The continuous bulk polymerization method has low energy consumption, generates fewer waste materials, and requires relatively low investment costs, representing a new direction for development. However, to date, it still has limitations in terms of the production scale per unit facility and product diversity ； The emulsion grafting–bulk SAN blending method is relatively more mature; it was the dominant production process for ABS resin worldwide before the 1990s, and it remains the most widely used processing technique globally today. It is recommended that when building new ABS resin production facilities in our country, the emulsion grafting–bulk SAN blending process be adopted to ensure the competitiveness of the products. 　　(3) Strive for the joint development of raw material and product markets. Currently, there is a shortage of all three main raw materials used in the production of ABS resin in China; imports are still required each year. This significantly hinders the development of China’s ABS resin industry. In the future, when expanding or building new ABS resin plants, it is necessary to pay close attention to the issue of raw material availability and supply, to develop upstream and downstream product chains, to ensure a stable supply of raw materials, and to enhance the economic efficiency and risk resistance of such plants. 　　(4) Adjust the industrial structure, increase efforts in research and development, and actively explore new market segments. In some traditional application areas, ABS resin is facing increasing competition, and its market share has begun to decline. Our country must, in response to market demands and building on existing production facilities, vigorously develop specialized ABS resin varieties with properties such as impact resistance, heat resistance, weather resistance, high flowability, electroplating compatibility, flame retardancy, high gloss, antistatic properties, laser marking capability, electromagnetic shielding, vibration damping, and gas barrier properties. It is also necessary to develop various specialized materials for use in refrigerators, helmets, sheets, and automotive dashboard covers. Furthermore, in recent years, alloys/blends of ABS resin with other engineering resins featuring high-performance properties have seen rapid development. The most common types include ABS/PC, ABS/PVC, ABS/PBT, ABS/PA, and TUP/ABS. Therefore, China should also increase its efforts in developing ABS resin blends, and swiftly introduce its own products based on such blends, in order to address the issue of a limited variety of ABS resin products and their low quality levels in the country. This will help meet the domestic demand for products of different quality grades in actual production. 　　(5) Accelerate the absorption and utilization of imported technologies as well as the development of domestic technologies. At present, China’s large-scale ABS resin production facilities rely on foreign technologies and production processes; however, the pace of integrating these imported technologies is relatively slow. The localization of these facilities has essentially come to a standstill, which prevents the full realization of their potential, results in low production volumes, and makes it difficult to adjust the product mix in response to market demands. As a result, high-performance ABS resin products are largely dependent on imports. Therefore, it is urgent to speed up the integration of imported technologies and the development of domestic technologies in order to ensure the healthy and stable development of China’s ABS industry in the future. 　　(6) Rational arrangement and proper layout At present, most of China’s ABS resin manufacturers are located in the Northeast, Jiangsu, and Zhejiang provinces. Guangdong, which is the largest consumer of ABS resin in China, does not have any ABS resin production facilities; therefore, it is recommended that new production facilities be established in regions with high demand for raw materials, such as Guangdong. 　　(7) Strengthen management, allocate tasks reasonably, and achieve common development. Based on market demand and respective production capabilities, relevant manufacturers should be assigned to focus on producing certain specific grades of products. Each manufacturer should choose or combine the most cost-effective technical approaches for the grades it focuses on; this not only helps to avoid redundant production and reduce costs but also aids in streamlining sales channels, reducing unfair competition, and enhancing competitiveness against foreign products. 　　(8) Strengthen industry collaboration to avoid sectoral risks. The ABS resin industry is currently facing a very favorable economic and policy environment; however, as more resources flow into the ABS resin market, speculation is becoming increasingly severe. At the same time, due to the lack of effective transmission of prices for products in the upstream and downstream stages of the industry, companies face tighter financial constraints. To avoid such risks, it is necessary to strengthen cooperation between enterprises and those in related industries. Source: Feno Network http://www.feno.cn

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By 2007, I hope this will be useful to you! 1 Production capacity: In the 1990s, ABS was not widely used as a high-quality resin in China. Entering the 21st century, with the continuous development of the electronics and automotive industries as well as the upgrading of consumers’ preferences, demand for ABS resin in China grew at a rapid pace; the average annual growth rate from 2001 to 2007 was 12.7%. Meanwhile, domestic manufacturers have begun investing in research on ABS production technologies to improve the quality of ABS products; this has also attracted many enterprises to build new ABS resin production facilities. According to statistics, in 2005, there were 9 manufacturers of ABS resin in China, with a total production capacity of 1.28 million tons. In March 2006, the completion and commissioning of a 100,000 t/a expansion project for ABS resin at Daqing Petrochemical Company brought China’s total production capacity for ABS resin to 1.33 million t/a. Recently, the ABS production plant in Ningbo operated by South Korea’s Ship Chemical Company, namely Ningbo LG Yongxing Chemical Company (a 75/25 ABS joint venture between LC and Yongxing Chemical Company), increased its annual ABS production capacity from 300,000 tons in 2006 to 480,000 tons. Shanghai Gaqiao Petrochemical Company’s 200,000 t/a ABS plant was put into operation in mid-January 2007 in the Shanghai Chemical Industry Park (Caojing). It is the only production facility within this 200,000 t/a ABS project that utilizes the continuous bulk polymerization technology provided by Dow Chemical Corporation of the United States. This plant offers advantages such as low raw material consumption, low consumption of major utility resources (electricity, water, nitrogen, instrument air), and reduced emissions of waste materials, making it a technologically advanced production unit. Its products have pure colors and excellent self-coloring capabilities; their quality and processability are on par with imported products, enabling them to serve as substitutes for those imports. The high added value of these products gives them strong competitiveness in the market. The 200,000 t/a ABS project is a downstream associated project of Shanghai Sinopec’s 900,000 t/a ethylene plant. The project consists of three production lines, each with a capacity of 75,000 tons per year; they represent the largest production lines in the world that utilize the continuous bulk polymerization process. By 2006, China’s ABS production capacity had increased from 480,000 t/a in 2000 to 1.6 million t/a in 2006. In 2007, ABS production capacity was further increased to 2.03 million tons per year, ranking first in the world; the average annual growth rate of production capacity from 2000 to 2007 was 22.3%. In 2007, there were 10 AB$ manufacturing enterprises in China. Table 1 shows the production capacities of these AB$ resin manufacturers in that year; Ningbo LG Yongxing was the largest among them, with a production capacity of 480,000 tons per year. In light of the current situation of China’s ABS market, South Korea’s LG Group plans to further expand its AB$ production capacity in China to 1 million tons per year. In addition, Zhenjiang Qimei also acquired Sinochem Group’s ABS plant in Taicang, thereby significantly expanding its production capacity. Shanghai Gaqiao Petrochemical’s 200,000 t/a ABS plant was put into operation in January 2007. Another facility that saw successful capacity expansion in 2007 was Zhenjiang Guoheng’s 150,000 t/a plant; production started there in October 2007, raising its capacity to 250,000 t/a. Table 1: ABS resin production capacity in China in 2007, in 10,000 tons per year. Enterprise, Production Capacity, Technical Route, Source of Technology. China National Petroleum Daqing Petrochemical: 11.0 tons/year; Emulsion-grafted bulk SAN blending; South Korea’s Weiyuan. China National Petroleum Jilin Petrochemical: 19.0 tons/year; Emulsion-grafted bulk SAN blending; Japan’s JSR. China National Petroleum Lanzhou Petrochemical: 5.0 tons/year; Emulsion-grafted bulk SAN blending; Japan’s Epon. Zhenjiang Qimei Chemical: 29.0 tons/year; Emulsion-grafted bulk SAN blending; Taiwan’s Qimei. Ningbo LG Yongxing: 48.0 tons/year; Emulsion-grafted bulk SAN blending; United States’ GE. Zhenjiang Guoheng: 25.0 tons/year; Emulsion-grafted bulk SAN blending; Taiwan’s Guoqiao. Xinhu Petrochemical (Changzhou): 10.0 tons/year; Emulsion-grafted bulk SAN blending; South Korea’s Xinhu. Liaoning Panjin Ethylene: 5.0 tons/year; Emulsion-grafted bulk SAN blending; South Korea’s Xinhu. Takahashi Petrochemical (Caojing): 20.0 tons/year; Continuous bulk polymerization; United States’ Dow Chemical. Analysis shows that China’s total ABS resin production capacity reached 2.03 million tons in 2007, and it is expected to reach 3.0 million tons by 2010. As the newly added production capacity gradually reaches stable operation, China’s self-sufficiency rate in ABS has increased. However, based on the current consumption pattern of ABS, it will not be possible in 2008 to change the situation in which imported materials dominate the market; it is expected that the production of domestic ABS in 2008 will still be lower than the volume of imports. Therefore, in the coming years, our country will still need to vigorously develop ABS resin. China’s ABS production increased from 19,900 tons in 1992 to 1.2785 million tons in 2006 and 1.7712 million tons in 2007; the average annual growth rate of ABS production from 2000 to 2007 was 28.9%. 2 Consumption: In recent years, the consumption of ABS resin in our country has been increasing rapidly. In 1995, the apparent consumption of ABS resin was only 837,000 tons, rising to 1.741 million tons in 2000. In 2002, its apparent consumption volume reached 2.145 million tons, making it a major consumer of ABS resin in the world and ranking first globally. In 2003, apparent consumption reached 2.319 million tons, with a self-sufficiency rate of 23.7% ； In 2004, it reached 2.547 million tons, with a self-sufficiency rate of 23.5%. Starting in 2005, the apparent consumption exceeded 3 million tons, rising to 3.077 million tons in 2005 and 3.274 million tons in 2006. Meanwhile, the self-sufficiency rates saw a significant increase, rising to 35.88% and 39.06% respectively. In 2007, apparent consumption rose to 3.913 million tons, and the self-sufficiency rate increased to 45.27%. It is estimated that from 2008 to 2010, the average annual growth rate of demand for ABS resin in our country will be around 9%, while from 2010 to 2015 it will be approximately 6%. By 2010, the total demand for ABS resin in China is expected to reach 4.5 million tons, and by 2015 it will reach 4.9 million tons. 3 Import and Export: Although China’s production capacity and output of ABS resin are growing rapidly, they still cannot meet the actual domestic demand, resulting in large-scale imports every year. China’s demand for and imports of ABS both rank first in the world, making it the second-largest importer of ABS globally. According to customs statistics, China’s imports of ABS resin amounted to 803,900 tons in 1995, and this figure rose to 1,469,000 tons by 2000 ； In 2003, the import volume was 1.7901 million tons, while the export volume was 21,000 tons. The dependence on imports was 77.2% ； In 2004, the import volume was 1.963 million tons, while the export volume was 16,000 tons; the import dependence ratio was 77.1% ； In 2005, imports reached 1.987 million tons, while exports amounted to 14,200 tons; the import dependence ratio was 64.58% ； In 2006, imports reached 2.0147 million tons, while exports amounted to 19,600 tons; the import dependence ratio was 61.54% ； In 2007, imports reached 2.173 million tons, while exports were 3. 180,000 tons, with an import dependence of 55.54%. At present, China’s ABS consumption still relies heavily on imports. In 2007, China’s imports of ABS amounted to 2.173 million tons, coming from seven countries and regions including Taiwan, China, South Korea, Japan, Malaysia, Thailand, the United States, and Belgium. Among them, Taiwan, China, remains the most important source of ABS imports for the Chinese mainland, accounting for 47% of the total imports. This also indicates the degree of dependence of Taiwan’s ABS industry on the mainland. South Korea is the second-largest importer of ABS in our country, with a 34% share of the import market, which is roughly on par with its position in 2006. Imports of ABS from these two sources account for over 80% of the domestic import market, thereby significantly squeezing the market space available to other competitors in the country. Importantly, Taiwanese and South Korean companies also hold a significant position among the new manufacturing facilities being established in the country. Other sources of imports include: Japan accounting for 7%, Malaysia accounting for 5%, Thailand accounting for 4%, the United States accounting for 1%, and Belgium accounting for 1%. 4 Consumption Structure: In China, the consumption of ABS resin is highly concentrated in electronic/electrical accessories, such as refrigerators, televisions, telephones, office equipment, and other small household appliances, accounting for approximately 80% of the total consumption ； Toys and car parts each account for 10%. In recent years, the focus of China’s ABS resin consumption market has been shifting gradually; the rise of industries such as automotive and electronics has brought about new changes in the structure of the ABS resin market. For many years, home appliances have accounted for a high proportion of ABS resin consumption in our country, but this proportion is currently on a downward trend. Due to an oversupply in the domestic market for home appliances such as televisions and washing machines, coupled with the substitution of ABS resin by alternative materials like modified polypropylene, its consumption in the large-scale home appliance sector is declining. Meanwhile, its use in areas such as small home appliances, office equipment, and the transportation industry is gradually increasing. It is expected that ABS resin also holds great potential in the transportation sector. The rapid increase in the production and consumption of cars and motorcycles will make automotive interior components a new source of growth for the ABS resin market. Leisure products such as yachts and mobile homes have also opened up new sales channels for ABS resin. Furthermore, ABS resin also has good market prospects in applications such as building materials like pipes and fittings, medical devices, and alloy blends. 5 Expansion Prospects To meet the growing demand for ABS in the domestic market, existing plants are being expanded, and foreign companies are also building new plants in China. As the domestic consumer market sees an upgrade in demand for automobiles and electronic appliances, consumption of ABS in China will continue to grow rapidly. Given the promising prospects for ABS consumption in the country, major petrochemical companies have accelerated their expansion efforts there in recent years. At present, companies such as LG Yongxing, Chi Mei, Formosa Plastics, Guoheng, Gaohua, and Jihua in China are already capable of producing ABS on a large scale, and they all plan to further increase their production capacity in the coming years. It is estimated that by 2010, China’s new ABS production capacity will reach 1.39 million tons, as shown in Table 2. Since the first two units built in our country using domestic technology have been shut down, all units to be operated in the future will be imported from abroad, with process technologies kept in line with international standards. Table 2: Statistics on Planned ABS Production Capacity in China, in 10,000 tons per year. Enterprises: 2005, 2006, 2007, 2008. Projects under construction or planned: Ningbo LG Yongxing Chemical – 30, 48, 48, 48; Ningbo 60 and Guangdong Huizhou 20. Zhenjiang Chi Mei Chemical – 14, 25, 29, 29; capacity to be increased to 50 by 2010. Taiwan Chemical Fiber (Ningbo) – 15, 15, 15, 25; no data for later years. Xinhu Petrochemical (Changzhou) – 6, 10, 10, 12; 20. Chi Mei Chemical Taicang Xingnuo – no data for earlier years, 6, 6, 6, 50. Jilin Petrochemical – 18, 18, 18, 18; capacity to be increased to 50 by 2010. Panjin Ethylene – 5, 5, 5, 5; capacity to be increased to 15 by 2010. Daqing Petrochemical – 5, 10, 10, 20; no data for later years. Tianjin Dagu Chemical – no data for earlier years; second unit with capacity of 20. Lanzhou Petrochemical – 5, 5, 5, 20. To meet market demand, several new ABS resin production facilities will be built or expanded in China in the coming years. For example, LG Chem plans to increase the production capacity of its facility in Ningbo from 480,000 tons per year to 600,000 tons per year after 2008. It also intends to build a new facility with a capacity of 200,000 tons per year in Daya Bay, Guangdong Huizhou, in 2008 ； Delta Electronics Taiwan will build a 150,000 t/a facility in Zhuhai. On January 18, 2008, the Energy and Chemicals Division of Shaw Group in the United States announced that it had won contracts to build two ABS production units in China; it will provide proprietary technology, engineering services, and equipment procurement support for the construction of two ABS plants with an annual production capacity of 200,000 tons each at Tianjin Dagu Chemical Industry Company. 2 sets of the installations are located in the Tianjin Industrial Park within the industrial zone of Tianjin. The contract covers the transfer of patented technology, process design packages, detailed engineering support, training and commissioning of the facilities, as well as services for the procurement of proprietary and critical equipment. Shaw Group Company and Sabic Innovative Plastics Technologies (formerly GE Plastics Global Technologies) have signed an agreement that will enable two plants in Dagu, Tianjin, to use the proprietary styrene emulsion ABS technology. J.M. Bernhard, CEO of the Shaw Group, said that the company was the first in the world to adopt Sabic’s advanced ABS technology for technology transfer purposes. This important project will further solidify Shaw Group’s leading position in the Sinopec market. In addition, the investment attraction plans for ABS projects across the country amount to 1.9 million tons per year, as shown in Table 3; by then, China’s ABS production capacity will exceed 3.4 million tons per year, which will significantly change the situation in which China relies heavily on imports for ABS. It is estimated that China’s total production capacity for ABS resin will reach 3.2 million tons by 2010, but this amount will still be insufficient to meet the demand of 4.5 million tons in that year. Table 3: Investment attraction plans for ABS projects across the country, in 10,000 tons per year. Location | Planned projects to be established: Fujian Meizhou – 30; Anhui Anqing – 20; Qingdao Development Zone – 30; Hainan Qiongshan – 40; Hainan Haikou – 30; Shandong Zibo – 20; Guangdong Zhuhai – 20. Therefore, it is recommended that, while increasing the operating rate of existing production facilities, China consider adopting the mature emulsion grafting bulk SAN blending process in areas with advantages in terms of raw materials, in order to build several new production facilities with a capacity of over 200,000 tons per year, thereby addressing the supply and demand imbalance of ABS resin in the country ； Increase efforts in industrial structure adjustment, and develop specialized ABS resins with properties such as impact resistance, heat resistance, weather resistance, high flowability, electroplating compatibility, flame retardancy, high gloss, antistatic properties, laser marking capability, electromagnetic shielding, vibration damping, and gas barrier properties. Additionally, pursue the development of various specialized materials for use in refrigerators, helmets, sheets, and automotive dashboard covers ； Furthermore, in recent years, alloys/blends of ABS resin with other high-performance engineering resins have seen rapid development. The most common types include ABS/PC, ABS/PVC, ABS/PBT, ABS/PA, and TPU/ABS. China should increase its efforts in developing ABS resin blends, and introduce such products on a large scale as soon as possible, in order to address the current situation of limited variety and low quality of ABS resin products in the country, and to meet the needs of domestic production for products of different quality levels. 6 Development Recommendations During the 11th Five-Year Plan period, ABS resin production will face four severe challenges. First, raw material bottlenecks. “During the 11th Five-Year Plan period, although CNPC and Sinopec built or expanded a number of styrene and acrylonitrile production facilities, they also launched projects for polystyrene, styrene-butadiene rubber, and acrylic fiber in the downstream sector. As a result, the raw materials available for ABS resin were limited, forcing many companies to rely on large-scale imports. Due to continuously rising oil prices, the petrochemical industry has entered a period of high oil prices. Both the availability and prices of styrene, acrylonitrile, and butadiene will become bottlenecks for the development of ABS resin. Second, environmental constraints. During the production process, not only must wastewater and waste gas be treated and discharged in compliance with standards, but also clean production practices must be followed. Additionally, during the modification and processing of ABS resin, it is necessary to prevent environmental pollution caused by additives such as flame retardants (including heavy metals and halogens). Recently, the EU has required manufacturers to take on the responsibility of recycling plastics from used electronic products and household appliances, which undoubtedly increases production costs while also raising the social responsibilities of these companies. Third, technological competition. The challenges posed by the continuous bulk process to traditional processes: Materials such as modified PP and high-impact PS present challenges to conventional products, forcing manufacturers to continuously develop various specialized materials, expand their scope of use, and strive to reduce costs in order to avoid falling into difficulties. Fourth, alignment with standards. Our products must be brought in line with international standards and gradually integrated with them, so as to overcome the technical trade barriers imposed by foreign countries on our products. In the future, when expanding or constructing new ABS plants, it is essential to consider issues related to raw material availability and supply. Given the rapid growth in both production capacity and demand, ensuring a stable supply of raw materials will be a key challenge for China’s ABS resin manufacturers. In addition, the product structure should also be adjusted. Abroad, ABS resin products are evolving toward higher performance, greater functionality, and a wider variety of types. Various specialized grades have been developed in series, enabling them to meet the diverse needs of different users at various levels. Most ABS manufacturers in our country are only able to produce general-purpose products; in the future, efforts should be made to develop specialized resin types with properties such as impact resistance, heat resistance, weather resistance, high flowability, flame retardancy, high gloss, antistatic properties, electromagnetic shielding, and vibration damping. Additionally, development of specialized materials for use in refrigerators, helmets, sheets, and automotive dashboards should be promoted, in order to address the issue of the limited variety and low quality of ABS resins in our country. Therefore, China’s ABS industry should continue to effectively expand production capacity in order to increase the self-sufficiency rate of its products ； Solve the raw material supply issue reasonably ； Adjust the industrial structure, increase investment in research and development, and actively explore new market areas ； Strengthen industry collaboration to avoid industry risks.

It’s really amazing – highly impressive material. Great work, OP!

The original posters are really great; upvoting one :)