Status quo of vinyl alcohol
      Despite the rapid development of Chinese ethylene industry and its important position in the world ethylene market, there were some risks which could not be avoided.
      First, the risk of market competition. An ethylene company in the Middle East produces ethylene mainly from ethane. The cost of ethane in the region is very low, and even with shipping costs, it is much lower than in the United States, Western Europe and the rest of the world including China, where costs are much lower. Low price Middle East downstream ethylene products such as polyethylene, ethylene glycol and so on flood into the Asia-Pacific and China market, will pose a serious threat to the Chinese market of related products.
      Second, environmental protection risks. At present, there is a certain degree of environmental pollution in the process of ethylene production, but under the current environmental protection technology conditions, ethylene production will cause some pollution to the atmosphere and water. Due to the continuous production of new projects, the Chinese government will introduce more stringent environmental protection standards in the future, which puts forward higher requirements for the environmental protection work of ethylene enterprises. Enterprises are at risk of rising due to the increase of environmental management costs.
Oil imports also pose risks. The large-scale construction of vinyl plants has also increased the demand for chemical oil. As China faces the restriction of oil shortage, the development of domestic petrochemical industry also faces the contradiction of resource restriction. Domestic crude oil production has been about 200 million tons, far below the growth rate of oil demand. With the development of ethylene industry in the future, the contradiction of chemical oil shortage will become more and more prominent.