Fabric And Yarn Production, Yarn Stocks Increase

The latest quarterly State of Trade Report from the International Textile Manufacturers Federation,
Switzerland, reveals second-quarter 2005 world fabric production increased by 4 percent to a new
record level. The gain was due largely to a 10.1-percent South American output increase and a
6-percent Asian increase. Conversely, Europes output fell by 2.4 percent for the third consecutive
quarter, while North Americas production remained steady.

Global fabric stocks fell by 1
percent, with only South America reporting an increase, which amounted to 1.4 percent. North
America’s inventory fell by 2.4 percent, Asia’s dropped by 2.2 percent and Europe saw a 0.7-percent

Global yarn production rose by 0.2 percent, with regional output reductions of 1 percent in
Europe, 4 percent in South America and 2.6 percent in North America. These decreases were offset by
an output increase of 1.7 percent in Asia — largely due to gains of 10.6 percent in Korea, 1.6
percent in India and

1.5 percent in Pakistan.

Global yarn stocks rose by 0.2 percent. Regionally, however, South American yarn inventories
dipped by 10.1 percent, and inventories dropped by 1.7 percent in Europe and 5.5 percent in North
America. Asia’s inventory rose by 2.9 percent.

Yarn orders fell by 3.6 percent in Europe and 1.6 percent in Brazil, while fabric orders
rose by 6.2 percent in Brazil and 2.4 percent in Europe.

November/December 2005