How will Turkey's earthquake and Pakistan's economic crisis impact rayon fabric export?

As Russia-Ukraine conflict raged, the Turkey earthquake and the nearly exhausted foreign exchange reserve in recent days also raised concerns for global economy and export market. So what will happen to rayon fabric export to Turkey and Pakistan?

Market concerns grew

Two 7.8 magnitude earthquakes hit Turkey on Feb 6, causing high death tolls and a large number of collapsed buildings, with tremors feeling by nearby areas. According to media report, Pakistan's foreign exchange reserve was only $3.09 billion at present, which can afford for 18-day import and export payment. Even worse, Pakistani also faced a mounting international debt, which now reached $294 billion and accounted for 90% of its GDP. That's why the impact of Turkey earthquake and Pakistan's economic crisis on China's textile and apparel export required attention.

Impact on rayon fabric export

Rayon grey fabric

China exports rayon grey fabric to near a hundred of countries and regions and the main export destinations are in Africa and Asia. Mauritania, Thailand, Greece and Brazil are the major export destinations, and Turkey and Pakistan rank 6^th and 7^th respectively, accounting for a moderate export volume. In 2022, the export to Turkey reached 19.36 million meters, accounting for 6.4% and to Pakistan reached 17.46 million meters, accounting for 5.8%.

Rayon dyed fabric

China exports rayon dyed fabric to near 140 countries and regions and the main export destinations are in Africa and Asia. Brazil, Indonesia, Mauritania, and Myanmar are the major export destinations, and Turkey and Pakistan rank 60^th and 5^th respectively. In 2022, the export to Turkey reached 902,100 meters, accounting for 0.11% and to Pakistan reached 48.54 million meters, accounting for 5.7%.

Rayon printed fabric

China exports rayon printed fabric to 130 countries and regions and the main export destinations are in Africa and Asia. Kenya, Somalia, Bangladesh and Brazil are the major export destinations, and Turkey and Pakistan rank 59^th and 12^th respectively. In 2022, the export to Turkey reached 1.22 million meters, accounting for 0.08% and to Pakistan reached 44.76 million meters, accounting for 2.98%.

Conclusion 

The uncertainty future of Russia-Ukraine conflict, strong earthquake in Turkey and the economic crisis of Pakistan will probably slow down global economy and shake the market in short or medium term by wavering risk appetite. In such a case, market could develop a more cautious mood for risk prevention, which will lead to a volatility of commodities. It'll also have negative impacts on China's textile export and restrain the export of rayon fabric. However, since Turkey and Pakistan only account for a relatively small share of China's rayon fabric export, the actual influence remains uncertain and requires further observation.