Gap between Output and Demand of ABS Resin Still Big
                        Yuan Ding
ABS resin is an important  engineering  plastics.   It  has
excellent processing properties. Production methods of ABS
resin include the emulsion-grafting process, the  emulsion
-grafting blending process and the bulk-suspension process.
1. Gap between output and demand is still big in China.
China started the production of ABS resin in 1970, but  the
development has been slow. The output reached 11 300  tons
in 1985 and 40 400 tons in 1995. The output came  down  in
the recent two years, being 16 200 tons in 1997.
    Lanzhou  Chemical  Industrial  Corporation  is  China's
biggest ABS resin producer and its output was 21 000  tons
in 1996, accounting for  75. 1%  of  the  national  total.
Gaoqiao Petrochemical Corporation is the second,  and  its
output was 6 035 tons in 1996, accounting for 21.6%. Major
producers also include Jining Engineering Plastics General
Plant, Panjin Bohai Chemical & Plastic Industrial Co., Ltd
. and Beijing Guolian Chemicals Co., Ltd.
The 100 000 t/a ABS unit in Jilin Chemical Industrial Co.,
Ltd. was completed in October 1997 and  wet  commissioning
was also conducted (See CCR 1997 No. 35).  It  has  become
the biggest ABS resin producer in China. After  the  start
of production, it can produce each year  80  000  tons  of
general-purpose varieties and 20  000  tons  of  varieties
with high impact  resistance,   high  flowability,   flame
retardance and high temperature resistance. There will  be
more than 30 product brands. The 50 000  t/a  ABS  project
constructed  by  LG  Chemical  in  Ningbo  has  also  been
completed and put into operation (See CCR 1998 No. 24).
ABS resin produced by China's own producers is  far  short
of the fast increasing demand in the domestic market.  The
import amount has increased rapidly since 1992.  According
to customs  statistics,   the  annual  import  amount  has
maintained at over 500 000 tons for the  recent  6  years.
The import amount was 1.027 million tons in 1997,  hitting
the highest record in history, and the net  import  amount
accounted 98% of the total  domestic  market  consumption.
The average import price was around 1 030 U.S. dollars per
ton in 1997. The import amount in the months from  January
to June 1998 was 492 400 tons,   and  the  average  import
price was 1 040 U.S. dollars per ton.
The rapid development of the household electric appliances
industry and the automobile industry  in  China  from  the
80's has brought  a  big  margin  increase  in  ABS  resin
consumption. The apparent consumption in 1997 was 986  700
tons, more than 10 times the apparent  consumption  of  84
900 tons in 1990. The growth rate  in  these  seven  years
reached 42.0%. The growth rate in the recent two years is
8.6%.
2. The domestic market demand keeps growing.
  The plastic products industry is the  major  consumer  of
ABS resin. With the development of  the  national  economy
and the improvement of  people's  living  standards,   the
plastic products industry in China is developing fast. The
output of plastic products reached 9.53  million  tons  in
1997. The output of plastic products  made  of  ABS  resin
holds the fifth place among plastic products,   accounting
for around 10% of the total output.
  The ABS resin consumption grows the fastest in  household
electric appliances. The reform and opening up has led  to
a rapid  development  of  the  industry.   More  than  300
varieties of household electric  appliances  have  made  a
fast increasing output.   The  output  of  electric  fans,
washing machines  and  refrigerators  is  already  in  the
leading position in the world.  With  the  improvement  of
people's living standards, household  electric  appliances
will be more popular in China. It  is  expected  that  the
demand of ABS resin in household electric appliances  will
increase by an annual rate of 15%, and the demand will  be
around 670 000 tons in 1998.
  The electronic industry (including  audio- video  sector,
computer sector and telecommunication sector) is  also  an
industrial department with a great consumption of ABS resin.
Audio-video sector includes radios, TV  sets,   recorders,
video recorders and CD players. The demand of ABS resin in
the electronic industry is expected to be around  200  000
tons in 1998.
  Being engineering plastics, ABS resin is extensively used
in  the  automobile  industry  and  the  machine- building
industry. The automobile industry, sedan manufacturing  in
particular, has developed fast in China in the recent years.
The state has defined automobile manufacturing to  be  one
of the four pillar industries of the national economy. The
output of automobiles will be 1.70 million in 1998  and  2
.70 million in 2000. The total amount will be 13 million in
1998 and 20 million in 2000. The demand of  ABS  resin  in
the automobile industry is expected to be  around  35  000
tons in 1998.
  The demand of ABS resin in other sectors (such  as  daily
-use articles, amusement appliances and  office  equipment)
will be around 200 000 tons in 1998.
  Therefore, the total demand of ABS resin in the  domestic
market will be around 1.10 million tons in 1998.
  The production capacity of ABS resin is less than 200 000
t/a in China. The gap between output and demand is big and
the situation of mainly relying  on  imports  can  not  be
changed in near future. The domestic market price  of&