Ethylene price
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I found that the price of Asian ethylene futures is 1,200 dollars per ton; at an exchange rate of 6.8, this corresponds to 8,160 yuan per ton in RMB. The domestic factory prices seem to be around 11,000 yuan per ton. Is this difference due to the gap between futures and spot prices, or is it because of the high price of ethylene in China?
Polyethylene costs only around 10,000 RMB; why is ethylene so expensive?
This post was last edited by qugd on 2010-3-23 at 13:50. It seems you don’t understand international trade, which is why such a misunderstanding exists. The price in US dollars is the FOB price for foreign trade, that is, it does not include shipping costs or any taxes in the country where the goods arrive. If you are able to get the goods at 8,160 RMB per ton as you have calculated in the factory, that would be an excellent thing. The correct formula is: RMB transaction price = (US$ export price + shipping and insurance costs + fees in the exporting country) * RMB exchange rate * value-added tax rate + fees at the port of arrival + domestic transportation and insurance costs + taxes within China. Use this formula to calculate how much it costs per ton. For such high-pressure gases or low-temperature liquids, it is necessary to rent specialized transportation vehicles and dedicated docks, all of which incur costs. Additionally, a discount can be negotiated on this quote.
What Hai brother said on the third floor makes sense; let’s set some rules!
2# Front-line staff: I’m sorry, I’m referring to the price of polyethylene
It’s clearly explained on the 3rd floor; indeed, I don’t know much about it, which is why I have doubts. When calculated this way, the prices at home and abroad are pretty similar
There’s no point in discussing it. This is because the import of ethylene in the domestic market is almost entirely monopolized by petrochemical companies. In other words, no matter how low the price abroad is, it has nothing to do with you. I once bought ethylene; the CIF price was over 6,000 at that time, but I still paid over 8,000 for it. This item needs to be transported by cryo-ship, and it is almost entirely in the form of futures. The only place in the country where it can be purchased in large quantities is Yangzi Petrochemical, which also sells it in bulk to others.
The guy on the 3rd floor seems to have missed the import tariff for ethylene. . . .
Transporting ethylene is difficult; most of it is transported via pipelines. Now that the market is good, ethylene is around seven or eight thousand. The price has risen quite significantly.
Hehe, the RMB has depreciated. Just joking. As everyone has said, other various costs should also be added!
If calculated in this way, coal-based olefins seem a bit risky, haha