Imports of ethylene in booming Jiangsu Province of east China grew sharply in January and despite strong demand at home, prices dropped in part due to the elimination of import duties.

Local customs sources said in January the province imported 5,325 tons of ethylene, up 14.5 percent year-on-year but the value of the imports dropped 8.4 percent to 4.47 million U.S. dollars.

Of the total, 2,911 tons was bought from the Republic of Korea, up 260 percent; and 2,415 tons was imported from Japan, down 37.2 percent.

Import prices decreased by 19.9 percent to 839 U.S. dollars per ton, the sources said.

There is a gap between domestic supply and demand for ethylene in China.

Last year the nation consumed 18.82 million tons of ethylene but produced only 8.88 million tons.

Industry insiders predict that China will soon be able to produce 16 million tons of ethylene while demand is expected to rise to 27.35 million tons.

Ethylene, a crucial basic raw material for petrochemical industry, is used mainly to produce synthetic rubber, plastic and other chemicals. Ethylene production is as a major measure of a nation's petrochemical industry.

Source: Xinhua