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Global Yarn, Fabric Output Increases

According to the first-quarter (Q1) 2006 State of Trade Report released by the Switzerland-based International Textile Manufacturers Federation, yarn and fabric production gained over the previous quarter's output. Yarn stocks barely rose, while fabric stocks were lower. Yarn orders rose sharply in Brazil and declined in Europe, and fabric orders were down in both regions.

Yarn production gains in North and South America, contrasted with lower output in Asia, contributed to a global hike of 2.3 percent for Q1 2006. Year-on-year global production rose 0.3 percent, with Asia increasing production; and Europe,  and North and South America lowering output.

Fabric output rose 2.4 percent globally for the quarter, helped by Asian and South American increases. Output in North America was unchanged, and was lower in Europe. Year-on-year, global production fell 5.1 percent, with reductions reported for all regions.

Global yarn stocks were only 0.1-percent higher for the quarter. Asian stocks rose slightly, South American inventories were unchanged, and European and North American stocks were down slightly. Year-on-year inventories were up 5.7 percent. North American stocks jumped 29.6 percent. Asia also recorded an increase, and European and South American inventories declined.

Global fabric inventories were 2.3-percent lower for the quarter, with Asia registering the only gain. Compared with year-earlier levels, global stocks rose 5 percent, including substantial gains of 30.1 percent in Asia, and most notably of 42.7 percent in Pakistan. Elsewhere, fabric inventories were lower.

Brazilian yarn orders rose 8.6 percent, while European orders were down 1.6 percent for the quarter. Year-on-year orders were 11.9-percent higher in Brazil and 5-percent lower in Europe. Q1 fabric orders in the two regions were 11.6-percent and 0.7-percent lower, respectively; while year-on-year orders were up 0.4 percent and 0.5 percent, respectively. Korean orders were at an all-time low, plummeting 43.6 percent for the quarter and 55.1 percent from year-earlier totals.

July/August 2006