Global textile consumption is estimated to expand at an annual average rate of 4% and reach 87 million tons by 2020. This growth is likely to fuel the demand for textile fibres.


Demand for textile fibres is projected to reach 93 million tons, and spun yarn demand is estimated to reach 47.3 million tons by 2015. A drastic growth in the global textile trade, quota expiries, and increasing opportunities of the emerging economies would fuel the growth of textile fibres. Textile fibres are being used increasingly in many household furnishing due to their inherent performance. Synthetic fibre market is estimated to grow in the global range, and more particularly in the developing countries.


Asia Pacific comprises of the biggest market for textile materials, closely followed by Europe. Asia Pacific will continue to be the biggest market for textile fibres for the years to come. Synthetic fibres represent the biggest segment of the total textile fibre market. China is the worlds largest manufacturer and consumer of textile fibres. The country also leads in the exports of filament yarn, polyester filament yarn, polyester staple fibre, viscose, and viscose staple fibre.


Global Fibre Consumption:


During 2008, many major fibre manufacturers had to restructure, or shut down their operations to remain solvent. Consolidation of facilities and closure of less profitable units were seen in the West European countries. Capacity declined by 0.9% in US and by 2.8% for EU. Other Asian countries saw a decline of 3-4% during 2008-09. Following a 7 year decline, global demand for textile fibres has recovered after 2008, during the recovery period; past recession. Demand increased by 4% during 2009, and 5% during 2010. Increase in the fibre consumption can be attributed to a 9% increase in the consumption of cotton. During 2009, global consumption of cellulosic fibres also increased by 11%. For making woven and knitwear apparels, cellulosic, and cotton fibres prove to be good competitors with woolen fibres.

Woolen fibres are the smallest of all the major fibres consumed in the world. Unlike other fibres, woolen fibre consumption did not meet with a decline during 2008, while at recession. On the contrary, consumption of woolen fibres fell by 10% during 2009 and by 1% during 2010.


ICAC reports that during 2009-10, global cotton production declined by 7% resulting from a decline of production in US, and China, the worlds two biggest cotton producing countries. Polyester industry is currently experiencing over capacity due to immense investments in China in the recent few years. But the shocking increase in the prices of cotton, and cotton yarn forced the apparel manufacturers to seek for options, and consequently choose polyester fibres. Thus, the over capacity of polyester fibres were absorbed by the garment industry. A shortage in acrylonitrile caused a decline in the production of acrylic fibres, despite its strong demand.


Global consumption of textile fibres is predicted to witness an increase of 2% during 2011. Cotton consumption is anticipated to be held restricted, and woolen fibre consumption is expected to fall following a decline in its production.


Global price trends for fibres:


During 2010, prices of fibre were strongly dominated by soaring prices of cotton and cotton yarn. As per the Cotlook A Index, cotton prices increased by 120% reaching its peak, the highest in the past decade. The drastic increase in prices of cotton made the price increase of other fibres to appear insignificant for comparison.

Predictions for 2011-12:


Global prices for all textile fibres are predicted to increase during 2011, through prices of cotton is expected to decline from its present state. Prices of wool are likely to increase and remain strong. Global cotton consumption is projected to expand at an annual rate of 2% and reach 32 million by 2020. Worldwide demand for manufactured fibres is expected to rise by 4.7% a year till 2012. Polyester prices will dominate the fibre market. Specialty products such as spandex, aramid, and carbon fibres will see a fast growth. Asian market will see a good growth.


References:


1)     Cottonguide.org

2)     Icac.org


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