Dow's plant in Torrance, Calif., with a capacity of 40 million pounds, is currently running polystyrene because of market conditions. In 1998, GE Plastics added 100 million pounds of new capacity to its site in Ottawa, Ill., while cutting capacity by 120 million pounds at Washington, W.Va. USES ABS is available in a range of compositions, enabling it to offer many properties. As automobile manufacturers strive to reduce the weight of cars and trucks, ABS will grow in transportation applications that emphasize strength and heat resistance. Though ABS is mature, producers continue to identify new applications and develop value-added grades.
Major producers continue to add capacity around the globe, keeping the market oversupplied.
Imports of cheaper material from Taiwan, South Korea and Mexico will influence domestic pricing for general-purpose and piping grades. As new production comes on in the Far East, exports of ABS resins will be hurt. With 1 percent sales growth in North America last year, ABS turned the corner after three straight years of declining sales. Even so, prices fell throughout the year and into this year as well. The ABS market will continue to face serious oversupply because of new capacity coupled with its displacement by less expensive materials in many applications.