Impact of Russia-Ukraine conflict on China re-PSF exports

Russia-Ukraine conflict has great impact on global economy, then what is the influence on China’s re-PSF exports?

The export volumes of China’s PSF (including virgin PSF and recycled PSF) to Russia are about 30,000-35,000 tons per year in recent three years, about 3-4% of the total export volumes, and export volumes to Ukraine are about 1,000-1,500 tons, with negligible proportion. For the exports to Russia, the volumes of re-PSF are about 15,000-20,000 tons.

For the re-PSF capacity in Russia and Ukraine, there is one recycled chemical fiber plant in Ukraine, mainly producing colored re-PSF, with a total production of 20,000-30,000 tons. Its products are mainly sold to local market and Europe. In Russia, there are 5-6 re-PSF plants, mainly engaged in solid re-PSF and HC re-PSF. Part of plants has unfavorable businesses, and only 2-3 plants can maintain normal production. It is understood that the daily production is about 200 tons, and the yearly production is 60,000-70,000 tons. The products are mainly digested in local market.

For the influences of the war, the plants and downstream plants in Ukraine are affected, impacting China’s exports, but the volumes are very small, so the influences are limited. For the plants in Russia, the production is basically not affected. The key is that Russian banks will be removed from the SWIFT, which may affect the payment term. But in recent years, during the trade between China and Russia, large proportion of trade actions is adopted to settle by RMB, so its influences are also likely to be small.