Yarn Production Stabilizes Stocks Rise Orders Drop

Yarn Production Stabilizes;Stocks Rise, Orders DropThe latest quarterly State of Trade Report from
the International Textile Manufacturers Federation (ITMF), Switzerland, reveals a stabilization of
global yarn production during the first quarter of 2003, with gains in some regions offsetting
lower output in others. North American output rose 9 percent, while South American production was
13.3 percent lower. A European gain of 1.8 percent offset a 0.7-percent Asian decline.Annualized
global yarn output rose 1 percent, reflecting an Asian increased output of 4.6 percent largely due
to increases in Pakistani yarn production. The Asian increase offset reductions of 13 percent in
Brazil, 2.5 percent in Europe and 1.1 percent in the United States.Yarn inventories increased 6.6
percent over the first quarter of 2003 and 2.8 percent on an annual basis. Increases were most
significant in Brazil, with 19.1 percent, and Asia, with 11 percent. European stocks were 6.7
percent lower, and US inventories decreased by 2.4 percent. Yarn orders decreased significantly for
the quarter. Brazilian orders dropped 11.7 percent, and European orders were down by 4.2 percent.
August 2003