The plants are expected to be completed intensively, and the pressure at the supply end is heavy.

The adjustment of the supply-side structure has a great impact on the overall profit of ABS, of which the overall China domestic supply capacity is insufficient before 2020, and some of the plants commenced sporadically cannot keep up with the growth of demand. The long-term supply shortage has given a long-term high-benefit situation, but the situation has changed to a certain extent since 2021, especially after the plant of Zhangzhou Chimei has been put into operation in the second half of the year. On the one hand, China domestic production capacity has grown significantly, and supply capacity has increased. On the other hand, China domestic demand growth has stagnated, and domestic production is rapidly squeezing out imports. By 2022, the 150kt/year plant of Cnooc&Lg Petrochemicals and 600kt/year of Liaoning Bora (currently 200kt/year of normal production) have been commenced. The 400kt/year plant of Lihuayi Group (the main body has been completed, and start test run), 400kt/year plant of Zhejiang Petroleum & chemical, 600kt/year plant of Petrochina Jieyang Petrochemical and 250kt/year plant of FCFC Ningbo are expected to be put into production. Although the start-up of some plants may be postponed, the overall supply is expected to increase significantly.