By Zheng Xin, Shandong Longzhong Information Technology Co., Ltd.

In the first half of 2023, surging ABS capacity drove the output expansion of acrylonitrile butadiene styrene copolymers (ABS) domestically. Meanwhile, as ABS exports mounted, the imports kept declining by 27.9% year-on-year to a record low of 527 000 tons.

Imports declined by years in the first half between 2018 and 2023

The first half in this year witnessed a 27.98% year-over-year decline in domestic ABS imports (see Figure 1), with import prices much lower than the year before. Domestically, ABS imports took a dive in 2023 as a result of expanding output and lower local material prices than imported ones.

Figure 1 China’s ABS imports in the first half of 2018 to 2023

In the first half of 2022 and 2023, top six stable sources of ABS imports were Taiwan of China, South Korea, Malaysia, Thailand, Japan and Vietnam (see Figure 2). In the first half of 2022, these six areas occupied 95% of overall imports with 692 000 tons. One year later, the share of top six import sources stayed the same with the imports of 501 000 tons. The import sources were mostly unchanged.

             Figure 2 China’s ABS imports in the first half of 2022 and 2023                          (based on import sources)

During 2018 to 2022, Chinese mainland saw a progressive decrease of ABS imports from Taiwan of China, with 899 000 tons in 2018 reducing to 560 000 tons in 2022, holding 38% to 45% of overall imports (see Figure 3). In 2023, the imports kept sliding with 185 000 tons in the first half, occupying 35% of overall imports, a month-on-month decrease of 5.9%.

Figure 3 The proportion of Chinese mainland's ABS imports from Taiwan of China      in total imports in the first half between 2018 and 2023

Since this year, ABS imports from Taiwan of China have shrunken, with main reasons as follows:

In the first half, surging domestic ABS capacity increased localization, which made large-scale and integrated production much better than neighboring countries. And lower ABS spot prices reduced ABS imports from Taiwan of China. As of the end of August in 2023, 17 ABS enterprises have produced 7 105 000 t/a, 11 of them topped 400 000 t/a or 87.7% of domestic capacity, and 5 of them with self-sufficient raw material occupied 26.5% overall and set up a production record.

Chi Mei Chemical Co., Ltd. and Formosa Chemicals and Fire Co., Ltd. (FCFC) keep expanding capacity in Chinese mainland. Chi Mei Chemical Co., Ltd. has two branches in Zhenjiang and Zhangzhou cities, with total 1 250 000 t/a, and FCFC branch in Ningbo city expanded its capacity of 250 000 t/a. 

Domestic ABS, with higher quality and affordable prices, sped up the replacement of ABS made in Taiwan of China. In 2023, affected by short supply and higher cost, imported material prices in China were on the high side, indicating that domestic ABS is more preferable. Moreover, domestic enterprises such as Zhejiang Petrochemical Co., Ltd. and China Petroleum Jilin Chemical Engineering and Construction Co., Ltd. owned better customer service.