ITMF Releases Q4 2007 State Of Trade Report

In its most recent State of Trade Report, for fourth quarter (Q4) 2007, the Switzerland-based International Textile Manufacturers Federation reported increased global yarn production and a drop in global fabric production, while inventories in both categories were higher than in the previous quarter, and orders were lower.

Q4's 2.7-percent higher global yarn output over the previous quarter reflected increased production in Asia and South America, at 3.7 percent and 8.1 percent, respectively, while Europe and North America registered 10.1-percent- and 9.1-percent-lower output, respectively. Year-on-year, output grew by 9.2 percent, with Asian production up by 11.7 percent and European, South American and North American production down by 11.9 percent, 8 percent and 5.1 percent, respectively.

Fabric production fell by 4.3 percent globally for the quarter, with only Europe registering an increase, of 1.8 percent, while North America, Asia and South America saw respective declines of 16.5 percent, 4.9 percent and 0.2 percent. Compared with Q4 2006, output rose by 5.9 percent, with gains of 8.6 percent and 0.8 percent, respectively, in Asia and South America, and drops of 12.3 percent and 6 percent, respectively in North America and Europe.

Rising by 3.4 percent for the quarter to the highest level in three years, global yarn inventories grew in all geographic regions, with a particularly large 31.5-percent gain in South America and slight increases in Europe and Asia of 3.4 percent and 2.4 percent, respectively. For the year, despite a 19-percent drop in South America, stocks increased by 3.6 percent, with gains of 14.1 percent and 5.7-percent, respectively, in Europe and Asia.

Q4 fabric stocks grew by 1.3 percent, with a 3.5 percent increase in Asia as opposed to respective declines in Europe, South America and North America of 5.5 percent, 1.6 percent and 0.9 percent. On an annual basis, inventories dropped by 28.3 percent, reflecting respective 35.3-percent, 7.1-percent and 4.3-percent reductions in Asia, Europe and North America, and South America.

Yarn and fabric orders in Europe declined by 2.8 percent and 2 percent, respectively, for the quarter, and by 6.7 percent and 2.7 percent, respectively, for the year. Yarn orders in Brazil rose by 8.3 percent for the quarter and 2.3 percent on an annual basis.; while Q4 and year-on-year fabric orders dropped by 15.6 percent and 8.4 percent, respectively.