South Korea’s Samsung SDI is planning to expand the capacity of its 560,000 mt/year acrylonitrile-butadiene-styrene plant in Yeosu by up to 30,000 mt/year, a market source said late last week.
While details could not be ascertained, the expansion is expected to be completed in 2016.
The ABS plant at Yeosu mainly produces higher grades of ABS, such as heat resistant and flame retardant grades, which are used in automobiles, TV, and refrigerators.
Around 10%-20% of Samsung SDI’s ABS output is also sold to subsidiary Samsung Electronics, which helps to maintain stable sales.
Despite weakening demand from manufacturing sectors mainly in China, ABS production margin has mostly stood in positive territory this year, partly due to relatively cheaper feedstock prices and largely stable demand for ABS compared with other polystyrene products such as high-impact polystyrene.
ABS was assessed at $1,265/mt CFR China last Wednesday, falling $20/mt week on week.
Based on assessed value, the ABS production margin was estimated at $25.85/mt above the notional breakeven level of $1,239.15/mt CFR China.
