Production cost of polypropylene
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This post was last edited by QXZ-1966 on 2010-7-16 at 11:02. There are many manufacturers in China that produce polypropylene, and the production volume is high as well; however, the actual cost of producing polypropylene remains unclear. Logically, with so many manufacturers involved, the cost of polypropylene should be quite transparent. Currently, the price of propylene is around 7,800–8,300 yuan per ton; therefore, the profit margin from producing polypropylene should not be high. What would happen if one’s own refinery produced propylene? Everyone might as well discuss it.
Sinopec’s companies have an internal pricing system for propylene, and the price of propylene is several thousand yuan lower than that of polypropylene; therefore, they won’t suffer any losses
Investment is not a small amount, and quality stability may also be an issue.
In large oil refineries, polypropylene is usually an by-product; since the refining process itself is profitable, the by-products can be considered as free money. Due to the soaring oil prices, many new types of coal-based chemical processes have emerged; coal-derived olefins can be used to produce polyethylene and polypropylene, and it is said that the cost of producing these materials is quite low.
The processing fee is around 600 yuan.
Propylene is indeed a by-product of ethylene cracking units. But the costs still need to be calculated.
The costs vary among different manufacturers; there is a larger difference among those that use intermittent processing methods. The cost generally ranges from 400 to 900 yuan. For continuous systems, the difference is not significant; the cost is around 500 yuan without granulation, and it ranges from 600 to 700 yuan when granulation is used
The processing cost of polypropylene at our factory is 760 yuan per ton. :(
Does 600-700 yuan/ton refer to the processing cost, or the total cost of raw materials and processing?
So what’s the profit per ton now?