The ABS plastic market will see a further increase in new production capacity by 2026
Acrylonitrile Butadiene Styrene (ABS) is an amorphous impact resistant engineering plastic, which is polymerized from three monomers: acrylonitrile, butadiene, and styrene. Due to its excellent physical properties, it has become the preferred choice for structural component applications. These characteristics include high rigidity, impact resistance, wear resistance, and strain resistance, mainly used in electrical enclosures, automotive parts, consumer goods, pipe fittings, and LEGO toys.
Overview of ABS Market
ABS plastic, also known as acrylonitrile butadiene styrene copolymer, is a widely used synthetic resin material with excellent mechanical, electrical, and chemical stability properties. Since the 1950s, it has been widely used worldwide, especially in the fields of automobiles, electronics, home appliances, construction, toys, and more.
The market demand for ABS plastic materials continues to grow globally, especially in the high-end product field. In the first half of 2024, the production capacity of China's ABS plastic industry continued to expand. Zhangzhou Qimei Phase II 150000 tons/year ABS plant and Dalian Hengli 300000 tons/year ABS plant were successively put into operation. The total annual production capacity of ABS plastic in China has reached 8.31 million tons.
Forecast of New Production Capacity in 2026
According to the Huajing Intelligence Network, China's new ABS resin production capacity will exceed 4 million tons from 2024 to 2026. Such a large-scale increase in production capacity will further enhance China's position in the global ABS plastic market and provide more abundant raw material support for the development of related industries.
The impact of new production capacity on the market
Price trend: In the short term, the release of new production capacity may have a certain impact on market prices, leading to price fluctuations. But in the long run, with the continuous growth of market demand and the gradual improvement of the industrial chain, prices will gradually stabilize and are expected to maintain relative balance within a reasonable range.
Competitive landscape: The increase in new production capacity will further intensify market competition, prompting enterprises to continuously improve their competitiveness. In the process of competition, enterprises will pay more attention to improving product quality, technological innovation, cost control, and service level, thereby promoting the upgrading and development of the entire industry.
Industrial upgrading: In order to better cope with market competition, enterprises will increase investment in technology research and development, equipment updates, talent cultivation, and accelerate the pace of industrial upgrading. This will help improve the overall technological level and industrial concentration of China's ABS plastic industry, and enhance the industry's international competitiveness.
Development Trends and Prospects
In the future, the ABS plastic industry will develop towards high-performance, environmentally friendly, and energy-saving directions, continuously meeting the demand of various industries for high-performance plastic materials. At the same time, enterprises should strengthen technological innovation and improve product quality to cope with increasingly fierce market competition.
With the gradual release of new production capacity and the continuous growth of market demand, the ABS plastic market will usher in new development opportunities. Driven by policy support, technological innovation, and market demand, China's ABS plastic industry is expected to achieve higher quality and more sustainable development, making greater contributions to the growth of the national economy.
