ABS market analysis allows you to understand key trends in the market. It also helps you know the commodity’s average price and whether you have better options in terms of supplier. Here are a few things you should know about Acrylonitrile Butadiene Styrene market analysis.
Why Is Acrylonitrile Butadiene Styrene in Demand?
Acrylonitrile Butadiene Styrene is made of three monomers – Butadiene, Acrylonitrile, and Styrene. Hence, it is also known as terpolymer. Each monomer in the ABS has some unique properties that become an integral part of ABS after their chemical unification.
Attractive finishing, chemical stability, and high tensile strength are some of the important characteristics of ABS.
Information You Will Get From Market Analysis of ABS
The global ABS plastic market estimated value is expected to reach $34.88 billion by the year 2022. The substantial growth is due to many factors like increased use of ABS in automotive components and construction sectors.
The increased use of copolymer in the automotive sector across the globe is expected to increase ABS’s demand. The automotive sector is experiencing growth as demand for motorbikes, public transport systems, and commercial vehicles are ever-increasing.
The adoption of ABS is likely to increase in the future. Some of ABS applications involve the production of side-view mirrors, central console, interior auto parts, and liners of the headlights. As the sale of vehicles moves upward, it will also expand the ABS market.
Market Overview – 2nd Quarter of 2020
The market is segmented into five regions- Asia-Pacific, North America, Europe, South America, and the Middle East and Africa. Out of these five regions, three regions witnessed more ABS trade. These regions are
The supply in Asia increased as Japan started its plants again after the pandemic. South Korean manufacturers were already pushing the manufacturing to a higher limit to reap better margins in the 2nd quarter. Due to maintenance, Taiwan’s ABS production was low. Western supply levels were running high due to Q1 maintenance in most regions.
ABS imports remained high due to growing demand from China and some northeast Asian countries. Importers were happy from the healthy margins due to lower downstream productions in the ABS sector.
ABS market was greatly affected by the lockdown announced in many European countries. The lockdown resulted in the temporary closure of automotive plants, which reduced the ABS consumption in the automotive industry and destroyed the demand.
The supply was strong in most European countries though the demand was low due to the pandemic.
In the US, there was a different picture altogether. AmSty, one of the main producers of ABS, has been experiencing some equipment issues in Saint James, Louisiana. The company faced problems in restarting production after the end of planned maintenance. The supply is tight in the US, but it has minimal effect on the market as demand for ABS is low due to pandemic.
Key Market Trends
- ABS is used in several automobile parts, fueling the demand for it. It is used in bodywork, external parts, and internal parts too. You would be surprised to know the airplane’s luggage compartments and panels are made of ABS. The lightweight density and heavy-duty frame make it ideal for airplane parts.
- ABS sheets are also used in railways. It is mostly used in making ceiling panels, windows masks, and seat backs.
- The global automotive industry is focused on introducing environmentally-friendly vehicles. We are still far from a world driven by electric cars. The masses have not adopted this green technology, and it is bound to take time. Manufacturers are always striving to make their vehicles more environmentally friendly. This can be achieved by increasing fuel efficiency, which will automatically reduce harmful emissions.
Major Supply Markets
Asia is the biggest manufacturing hub for ABS, with a market share of 83%. Europe and North America have a market share of 9% and 8%, respectively. Companies leading the way in ABS production are South Korea, which has a market share of 31.9%, followed by Chinese Taipei, which has a supplier market share of 25.9%. Other Asian countries like Japan, Malaysia, and Thailand hold a smaller supplier market share below 10%.
China is the main importer of ABS, accounting for 31.1% of total imports followed by Hong Kong at 11.3%.
The ABS market analysis gives you a clear view of the market, the upcoming trends, opportunities, and challenges. The information provided in the report can help optimize your supply chain and get ABS at lower prices. You can make informed decisions for your business accordingly.