At the Fourth China ABS Resin Technology Symposium held on August 31, Yang Weicai, vice president of the China Petroleum and Chemical Industry Association and president of the China Engineering Plastics Association, raised important concerns about the challenges facing the ABS resin industry during his analysis of the current situation. He pointed out that during the "Eleventh Five-Year" period, the production of ABS resin would encounter four major issues that could significantly impact its development.
First, there is a raw material bottleneck. Although CNPC and Sinopec have launched or expanded several styrene and acrylonitrile plants during the "Eleventh Five-Year Plan," many of these projects also included downstream products such as polystyrene, styrene-butadiene rubber, and acrylic. As a result, the supply of key raw materials for ABS resins remains limited, with most companies still relying heavily on imports. With oil prices continuing to rise, the petrochemical industry has entered a high-cost era. This not only affects the availability of critical components like styrene, acrylonitrile, and butadiene, but also drives up their costs, creating a significant challenge for the ABS resin sector.
Second, environmental protection constraints are becoming increasingly stringent. The production process requires strict treatment of wastewater and exhaust gases to meet regulatory standards, along with implementing clean production practices. Additionally, during the modification and processing of ABS resins, it is essential to manage the use of additives—such as flame retardants—which may contain heavy metals or halogens and pose environmental risks. Recently, the European Union introduced new regulations requiring manufacturers to take responsibility for recycling used electronic products and plastics from household appliances, further increasing operational costs and corporate social responsibilities.
Third, technology competition is intensifying. Traditional bulk processes face growing challenges from alternative materials such as modified PP and high-impact PS, which are gaining market share. These developments put pressure on ABS resin manufacturers to innovate, develop specialized materials, expand their application areas, and reduce costs in order to remain competitive and avoid stagnation.
Fourth, standard convergence is necessary. To break through foreign technical trade barriers, Chinese ABS resin products must align more closely with international standards. This will help enhance product competitiveness and open up new markets globally.
It is worth noting that over the past five years, the domestic demand for engineering plastics has been growing at an annual rate of 25% to 30%. In 2003, China became the world’s largest consumer of engineering plastics. However, the domestic production of the top five engineering plastics can only meet approximately 15% of the demand, with synthetic resins largely relying on imports. Although the output of ABS resin increased from 299,000 tons in 2000 to 915,000 tons in 2004—a 41.2% average annual growth—it still lags far behind the rising demand. This highlights the urgent need for the industry to address these challenges and accelerate its development.
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