As the Rupp Report has reported during the past weeks, mainly from ITMA 2011 in Barcelona, Spain,
the international textile community is enjoying a positive time. Reports with opinion and market
leaders show some solid positive trends for the year to come — and for the past six months. The
Rupp Report recently received the latest news from the Switzerland-based International Textile
Manufacturers Federation (ITMF) regarding yarn and fabric production for the third and fourth
quarters of 2011. These figures illustrate an optimistic trend toward ongoing confidence in the
business.
Increased Yarn Production
The report states: “In comparison with the previous quarter, world yarn production increased
in the 3rd quarter of 2011 by +2.5 percent. South America and Asia recorded increases of +9.2
percent and +2.7 percent, respectively.” On the other hand, “North America and Europe recorded
decreases of -4.9 percent and -4.8 percent, respectively. Year-on-year global yarn production rose
slightly by +1.1 percent due to higher output in Asia by +1.6 percent, and despite lower output
levels in North America (-8.5 percent), South America (-7.5 percent) and Europe (-2.6 percent).”
Increased Fabric Production
The same comment is given for global fabric production: “Compared with the previous quarter
global fabric production increased in the 3rd quarter of 2011 by +5.9 percent. Fabric production
rose by +7.5 percent in Asia and by +3.1 percent in South America, but fell in Europe by -8.7
percent. In comparison to last year’s 3rd quarter global fabric production was down by -2.3
percent. Looking at the various regions only South America recorded an increase (+4.6 percent),
while in Europe, Asia and North America fabric production was reduced by -4.9 percent, -2.6 percent
and -2.4 percent, respectively.”
Decreased Yarn Stocks
In contrast, ITMF reports: “Global yarn stocks dropped in the 3rd quarter of 2011 compared
with the previous one which was especially due to lower stocks in South America and Asia, while
stocks in Europe and North America remained practically unchanged.” This fact was certainly an
effect of the volatile cotton prices. The Rupp Report has informed its readers in the past months
about the ups and downs of the cotton prices.
Higher Yarn …
However, “Year-on-year global yarn inventories increased as a result of higher stocks in Asia
and in spite [of] a drop in South America. … Yarn inventories dropped worldwide by -11.4 percent in
the 3rd quarter of 2011 compared to the previous one. In South America and Asia they fell by -20.6
percent and -14.8 percent, respectively, but remained almost unchanged in Europe and North America.
On an annual basis global yarn stocks were up by +2.0 percent. In South America yarn inventories
fell by -9.5 percent, but rose in Asia and Europe by +4.8 percent and +0.3 percent, respectively.”
… And Fabric Inventories
“Global fabric inventories rose in the 3rd quarter of 2011 by +4.4 percent as compared to the
previous one. In South America they jumped by +14.9 percent and also increased in North America by
+4.0 percent, in Asia by +0.6 percent and in Europe by +0.5 percent. In comparison to last year’s
3rd quarter, the global fabric inventories increased by +15.7 percent. In South America they soared
by +64.0 percent and also rose by +12.3 percent in North America, by +4.1 percent in Asia and by
+0.7 percent in Europe.”
Lower Order Income
The report adds: “Yarn and fabric orders fell in Europe both compared to the previous and
last year’s quarter. … [The] orders in Europe were slightly down by -0.4 percent and -1.5 percent,
respectively, in the 3rd quarter of 2011 compared to the previous one. Year-on-year yarn and fabric
orders in Europe decreased slightly by -0.1 percent and -1.5 percent, respectively. In Brazil yarn
and fabric orders jumped compared to the previous quarter by +23.5 percent and +15.7 percent,
respectively. On an annual basis yarn and fabric orders were down in Brazil by -19.9 percent and
-10.0 percent, respectively.”
Different Expectations For The Future
The ITMF report comments that “The estimates for yarn and fabric production in the 4th
quarter of 2011 in most countries are mixed. While the majority of producers in Asia are expecting
increases, those in Europe (with the exception of Turkey), North and South America are more
sceptical expecting lower output levels.”
Well, after all, the response over the last few weeks from machinery suppliers wasn’t that
pessimistic about this coming year. Many of them expressed their feelings that they are expecting a
prosperous 2012 that should be at least as good as 2011.
February 21, 2012
