The Switzerland-based International Textile Manufacturers Federation’s (ITMF’s) State of Trade
Report for the third quarter (Q3) of 2007 for the first time includes data for Chinese yarn and
fabric production.
According to the report, global yarn output for the quarter grew by 0.6 percent over the
second quarter (Q2) of 2007, reflecting an increase in Asia, and lower outputs in Europe and North
and South America. Year-on-year, global production was 8.7-percent higher, with a significant
increase recorded in Asia, a slight increase in Europe, and lower outputs in North and South
America.
Q3 fabric production increased by 0.2 percent over the previous quarter, reflecting growth in
Asia and North America, and declines in Europe and South America. On an annual basis, global output
grew by 8.8 percent, with a substantial gain in Asian output, and declines elsewhere.
Yarn inventories, up by 1.1 percent for the quarter, were the highest in three years, despite
a 26.6-percent drop in South America. Year-on-year, yarn stocks rose by 10.9 percent, reflecting
higher inventories — 21.6 percent and 13.2 percent, respectively — in Asia and Europe, and a
40-percent drop in South America.
Global fabric stocks were down by 16 percent for Q3 2007, with Asia and South America
reporting lower inventories, and Europe and North America showing higher stocks. On an annual
basis, inventories dropped by 31 percent, with all areas except Europe reporting declines.
Yarn orders for the quarter fell in Europe and Brazil by 3.2 percent and 2.9 percent,
respectively, compared with Q2 2007; and by 1.5 percent and 17.8 percent, respectively, on an
annual basis. Q3 fabric orders were 3.5-percent lower in Europe and 3.2-percent higher in Brazil,
compared with the previous quarter. Year-on-year, fabric orders were down in Europe by 3 percent
and in Brazil by 7.7 percent.
May 21, 2008