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Decline in global yarn & fabric output

Feb '07
After a three year high in the Second Quarter of 2006, global yarn production fell despite higher output in Asia due to significant lower results in all other regions. Fabric production decreased in all regions with North America experiencing the strongest reduction.

The level of global yarn stocks continued to rise in the Third Quarter of 2006 as a result of higher inventories in Asia, Europe and South America. With global fabric stocks slightly lower compared to the previous Quarter, the upward movement of the past three years came to an halt mainly as a result of lower inventories in Asia and Europe. With respect to both yarn and fabric orders lower volumes were recorded.

The reduction of world yarn output in the Third Quarter of 2006 compared to the previous one (-1.0%) was a result of lower output in Europe, North America and South America (-6.9%, -8.4% and -4.9%, respectively), which could not be compensated by an increasing output in Asia (+2.0%). On an annual basis, world yarn production was slightly higher with an increase of +0.8% with Asia, South America and Europe expanding their output (+5.6%, +4.8% and +0.7%, respectively) and North America recording a significant curtailment of -16.6%.

Global fabric production in the Third Quarter of 2006 fell by -3.2% in comparison with the Second Quarter, with all regions contributing to this decrease (North America: -8.1%; Europe: -7.7%; South America: -1.3% and Asia: -0.9%). On a year-to-year basis, world fabric output dropped even stronger (-4.8%). While Asia still recorded a slight increase of +1.9%, North America suffered a sharp decline of -33.1%, followed by Europe (-3.5%) and South America (-3.5%).

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