Profit Comparison: Waste Tire Pyrolysis vs. Rubber Powder Grinding

Profit Comparison: Waste Tire Pyrolysis vs. Rubber Powder Grinding

Based on current industry data and market performance, the profitability differences between the two models are mainly reflected in three dimensions: profit margin, policy risk, and operational threshold, as detailed below:

1. Profit Margin Comparison

Waste Tire Pyrolysis

Each ton of waste tires can produce 40%–45% tire oil (approximately 0.4–0.45 tons). At the current market price of 3,600–5,000 RMB/ton for tire oil, the revenue from oil alone can reach 1,440–2,250 RMB per ton of raw material.

By-products such as carbon black and steel wire can add an additional 300–800 RMB/ton in revenue, resulting in a comprehensive profit of approximately 500–1,200 RMB per ton. High-quality equipment and catalytic processes can further increase returns.

Waste Tire Rubber Powder Grinding

The selling price of rubber powder is about 1,700–2,000 RMB/ton, but the comprehensive cost per ton (including raw materials, electricity, and environmental protection) is approximately 1,650–1,900 RMB. The gross profit margin is generally less than 10%, with a profit of only 200–300 RMB per ton.

Overcapacity in low-end production leads to fierce market competition, keeping prices under long-term pressure and further compressing profit margins.

2. Policy and Environmental Risks

Pyrolysis Model: Strict environmental protection requirements mandate supporting systems such as closed pyrolysis and exhaust gas purification, resulting in higher compliance equipment investment. However, it aligns with the national policy of "resource utilization and energy recovery," and qualified projects can receive policy support.

Rubber Powder Grinding Model: The process is relatively simple, but it faces dual pressures of rising raw material prices and weak terminal demand. Additionally, with the upgrade of industry standards, environmental protection costs continue to increase, limiting the survival space for small and medium-sized enterprises.

3. Operational Threshold and Application Scenarios

Pyrolysis Model: Suitable for large-scale enterprises with significant equipment investment (a single production line typically costs millions of RMB). However, it offers high-value-added output with an ROI of 15%–25%, making it more suitable for entities with stable raw material channels and financial strength.

Rubber Powder Grinding Model: Requires lower equipment investment (small production lines cost approximately 200,000–500,000 RMB), but has small production scale and thin profits. It is more suitable for regional small-scale recycling enterprises or as a supporting pre-processing link before pyrolysis.