On Sunday, 15 countries gathered to solidify their participation in Regional Comprehensive Economic Partnership (RCEP) by signing a free-trade agreement (FTA) to strengthen their trade ties and ensure easier availability of goods and services across the countries.

Analysts anticipate that the most immediate impact of RCEP could be the regionalization of polyethylene (PE) and polypropylene (PP) trades within the Association of Southeast Asian Nations (Asean) region, northeast Asia and Oceania.Get more info : https://www.chemanalyst.com/NewsAndDeals/DealsDetails/regional-comprehensive-economic-partnership-rcep-deal--78The silver lining could be the gradual reduction of import tariffs for PE and PP stocks from northeast Asia-origin to southeast Asian countries such as Thailand, Malaysia, the Philippines and Indonesia from 5-10% to not more than 5% over the next 10-20 years.

Lower freight rates and shorter transit times would also attract buyers in RCEP nations.

The FTA was signed by China, Japan, South Korea, Australia, New Zealand and the 10 members of Asean.

According to data from the International Monetary Fund, RCEP nations hold nearly a third share in the global economy and their combined gross domestic product stands at around USD 26 trillion.

However, on November 4, 2019, India backed out from the discussions over “significant outstanding issues”.

Finland based oil refining and marketing company Neste, Oyj has entered into a pact with the South Korean chemical giant LG Chem, aiming to produce the biopolymers and biochemicals globally.

As per the pact, LG Chem will replace the fossil feedstocks used for manufacturing polymers and chemicals with ‘Neste Renewable Hydrocarbons’ in the near term, thereby lending its significant contribution towards transforming the world into a circular bioeconomy.Get more info : https://www.chemanalyst.com/NewsAndDeals/DealsDetails/lg-chem-and-neste-collaborate-to-produce-bio-based-polymer-resins-77The partnership would enable the Korean chemical company to produce eco-friendly resins from Neste’s biomaterials, and hence would enable the company to achieve its required sustainability standards.

With this strategic move, LG Chem plans to start the production of bio-based Polyolefin (PO), Polycarbonate (PC), Super Absorbent Polymer (SAP) and Polyvinyl Chloride (PVC) by the second half of 2021 (H2-2021) at its home market Korea.

The two parties are eyeing on huge impact over the global chemical industry through this supreme combination of LG Chem’s proprietary technology and diverse chemical portfolio with Neste’s environment sustainability solutions based on renewable hydrocarbons.About UsChemAnalyst is a ‘one stop’ digital platform that offers comprehensive market intelligence data and in-depth analysis of the Indian chemical and petrochemical industry.

ChemAnalyst’s team of 100+ analysts are engaged in tracking chemical prices daily, production capacity, demand and supply outlook, manufacturing plant locations, foreign trade data and news/deals for more than 400 major chemicals produced in India.

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