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MMF output falls 12.6 percent in Sept

18 Nov '05
1 min read

Recent months have witnessed a sharp drop in the production of man-made fibre textile industry in Brazil.

This decline is due to double impacts of decrease in demand at the retail level for textiles and apparel, and a loss of market share to illegal cheap Asian imports.

Moreover, MMF yarns and fabric have lost substantial market share to cotton, further shrinking production.

According to IBGE Index of Man-Made Fiber Yarn and Fabric Output (2002=100, seasonally adjusted), production of MMF yarns and fabrics reached 82.35, registering a growth from 77.70 in August, but noted a 12.6 percent year-on-year drop. This was preceded by an 11.8 percent drop in June, a 25.3 percent drop in July, and a 25.1 percent drop in August.

At the downstream level, apparel production drop has an influence on demand as well. Total apparel and accessories output plunged 13.6 percent in September, recording the third consecutive month of double-digit year-on-year decline.

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