ChemOrbis 4th Turkey Petrochemical Conference: ABS Market Will Be More Balanced By 2017
In 2014, global ABS capacity was 9.75 million tons while demand was 7.39 million tons. Asia is the only net ABS exporting region and by far the largest market (80%). South Korea counts for 70% of exports to the EMEA region as its cargos have been benefitting from FTA agreements with Europe and Turkey since 2013. Taiwan counts for 25% of ABS exports to EMEA.
“Over the last decade, China captured 80% of capacity growth in Asia with output used to focus on domestic demand whereas imported ABS was used in production of exported goods with tax refund. After a period of over-expansion during 2011-2014, a better supply-demand balance is expected to be achieved thanks to the lack of additional capacity,” Venot said. He further commented that the sudden demand drop seen in H2 2015 should be temporary.
“Europe and North America completed their consolidation period while developing regions will reshape local market dynamics under imports scheme. Players put first flag in developing regions with investments of SABIC Petrokemya and Styrolution joint venture with Brazil”, he highlighted.
For 2016, a total capacity of 330,000 tons/year will be added in Asia amidst projects at LG Chem/CNOOC JV (Huizhou), SAL Petrochemical (China) and LG Chem (Korea). Meanwhile, Petrokemya (SABIC affiliate) delayed the start up of its 150,000 tons/year ABS plant from January 2015 to Q4 2015.
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