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Higher yarn & fabric production in Q2 2007
06
Feb '08
In the 2nd quarter of 2007 global yarn production rose due to higher output recorded in Asia, Europe and North America. Also world fabric production increased due to higher output levels in Asia, Europe and South America. Despite a significant reduction of yarn stocks in South America, the global level of yarn stocks increased.

Lower inventories of fabrics in Europe and North America were more than offset by higher ones in Asia and South America. After reporting lower yarn and fabric orders in the 1st quarter, the picture changed in the 2nd quarter with higher orders in both segments in Europe and South America alike.

Global yarn production in the 2nd quarter of 2007 augmented by +1.7% as production in North America, Europe and Asia increased by +10.2%, +2.6% and +0.9%, respectively, whereas South America reported a decrease of -4.6%. On an annual, basis total yarn production fell by -1.5% due to significant reductions in South and North America (-20.7% and -11.2%, respectively). Europe's production fell as well though only slightly by -0.7%, while Asia was the only region with a higher output level (+2.7%).

Compared to the previous quarter, the 2nd quarter of 2007 showed an increase in global fabric production of +2.6% with Europe, Asia and South America experiencing slight increases of +0.1%, +1.9% and +11.4%, respectively. North America on the other hand reported a lower output (-1.3%). Year on year global fabric production was down by -2.6% as a result of curtailments in Europe, South and North America (-3.1%, -6.6% and -20.7%, respectively) which could not be offset by the increase in Asia (+1.7%).

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