Posted On: 10/06/2014 12:38:14 AM
Post# of 43065

Re: PaperProphet #14405
Quote:
If you feel $0.28/lb or $560/ton is the real price and not low based on the ad you specifically chose, that's certainly your right to use in your assumptions.
Again - the ad was from the link you provided - if you feel the ads are misleading, find a different site. There were plenty of ads with LDPE for sale at prices much less than .28/lb - is it your contention that all of those are misleading, too? That only the ones advertising plastic waste on the site at or above $800 / are being "truthful"? That seems a bit of a stretch, even for you.....
Quote:
Again, you used the retail price of diesel which also includes taxes. If you have a constant supply of diesel to sell, you can sell that at most for spot prices, currently $2.70/gallon for diesel. To get your $3.73, you need to set up and operate a gas station to collect about $0.50/gallon extra and also cheat the government out of their $0.52/gallon tax.
I couldn't have been clearer - the seller/buyer of waste HDPE would simply keep the fuel they made, which would reduce the amount of fuel they normally buy for their operations by the same amount, saving them the cost of buying that fuel at retail prices. Such a setup would be very beneficial for operations that had large fuel needs - say, like a waste management company. I never proposed that they try to sell the output at retail prices - although if they were set up to do that as you suggest, so much the better.
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If those sellers can turn whatever plastic they have into salable diesel, they have every right to sell that diesel at the spot price. The same goes for PTOI--if PTOI can actually turn any plastic into salable diesel, there's no reason why PTOI couldn't also sell that diesel at the spot price.
The argument was never that PTOI couldn't make salable fuel - it's always been that PTOI Niagara Falls couldn't do it profitably by buying $800 HDPE and selling the output at the spot price for diesel. But the examples show that PTOI Mexico, or PTOI U.K., or PTOI Ohio can be economically viable in more than one way, since there is HDPE/LDPE/PP out there for far less than $800 / ton.
If that is your way of saying that yes, there are situations where the simple math formula is refuted, then we agree.


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