Discussion: Given the current coal prices, what is the profit margin for the Shenhua Baotou project? ?
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This post was last edited by jordan569 on 2013-1-6 at 22:29. The Shenhua Baotou project involves 1.8 million tons of methanol and 600,000 tons of olefins; what is the profit margin considering current coal prices? . Note $ # , $ $
I was just in Shenhua Baotou; the company’s promotional materials used during the interview mentioned that earnings could reach 4 billion per year. The current price of coal is much higher than it was back then, so it’s likely that the earnings won’t reach 4 billion. However, this project cannot be evaluated solely based on economic benefits – considering China’s national conditions, it should be regarded as an energy strategy!
The coal price at the Baotou project site is much lower than the market price. It cannot be evaluated at market price.
**The technical capabilities required do not necessarily mean that profitability is essential.
It’s still a question whether it can be made to work; it’s too early to talk about profits!!!
The key lies in whether the MTO technology is reliable; the rest should be fairly mature, haha! It seems there’s no problem driving it, but as for whether it will earn money, that’s hard to say!
It seems the MTO unit has not yet been started, so it’s too early to discuss this.