HEBEI WEAVER TEXTILE CO., LTD.

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Impact of Russia-Ukraine tensions on rayon grey fabric export

After Putin signed two decrees recognizing “the Lugansk People’ s Republic” and “the Donetsk People’ s Republic” as independent and sovereign states, tensions between Russia and Ukraine escalated. Subsequently, the United States, Britain and the European Union announced sanctions against Russia. This has also triggered market concerns about the global economic recession and export markets. China’ s textile and apparel industry is highly dependent on global markets. Will the Russia-Ukraine tensions trigger a chain of reaction? What effect do the tensions have on the export market of rayon grey fabric?

 

First, market concern crept in. 

 

Russian President Vladimir Putin signed two decrees recognizing “he “Lugansk People’ s Republic” and “Donetsk People’s Republic” as independent and sovereign states. Putin also inked the Treaty of Friendship, Cooperation and Mutual Assistance between Russia and the LPR and the DPR respectively with the heads of the two “republics”. At present, the risk of conflict between Russia and Ukraine has also escalated sharply, with market worries about the global economic recession and exports rising. Downstream fabric mills who worry about the decline in raw material prices, hold a wait-and-see stance, and reacted with caution, so new orders are limited and the overall shipment is significantly lower than the same period in previous years.

 

Second, rayon grey fabric export market was affected.

 

Rayon grey fabric 

China’s rayon grey fabric is exported to nearly 100 countries and regions, which is mainly exported to Africa and Asia. There are more exports to Mauritania, Thailand, Brazil and Turkey, but less to Russia and Ukraine. In 2021, China’s rayon grey fabric exports to Russia reached about 219,000meters, accounting for 0.08% and those to Ukraine were 15,000meters, accounting for 0.01%.

 

Dyed rayon fabric  

China’s dyed rayon fabric exports are relatively divided, with exports to 120 countries and regions around the world, mainly to Africa and Asia. There are more exports to Brazil, Mauritania, Bangladesh and Pakistan, but less to Russia and Ukraine. The exports to Russia were about 1.587 million meters in 2021, accounting for 0.2%, and those to Ukraine were 646,000meters, accounting for 0.1%.

Printed rayon fabric

The exports of China’s printed rayon fabric are similar to that of dyed rayon fabric, with exports to 130 countries and regions around the world, mainly in Africa and Asia. There are more exports to Kenya, Somalia, Myanmar, Bangladesh and Brazil, while the exports to Russia and Ukraine are small. In 2021, the export to Russia was about 6.568million meters, accounting for 0.4% and those to Ukraine were 1.941million meters, accounting for 0.1%.

In conclusion, the tension between Russia and Ukraine has further escalated recently, which had a negative impact on China’s textile and apparel export market, and also had obvious negative constraints on the rayon grey fabric export market, and volatility in the global financial market and commodity market has intensified.

 

However, as China’s rayon grey fabric was mainly exported to Africa and Asia, the direct impact was limited. Amid Ukraine crisis, market risk appetite will decrease and risk aversion may rise sharply in the short-term, and geopolitical risk will increase market volatility and uncertainty trend.


Post time: Mar-02-2022