The Rupp Report: Impressive Rebound On Global Yarn And Fabric Stocks

The Rupp Report is pleased to publish more good news, this time from the yarn and fabric front:
According to the latest news from the Switzerland-based International Textile Manufacturers
Federation (ITMF), world textile production saw an “impressive rebound” in the second quarter of
2009. ITMF’s State of Trade Report Q2/2009 continues below:

Both global yarn and fabric production surged driven by Asia in general and China in
particular. Global yarn and fabric stocks continued to fall slightly both reaching long-term lows.
Yarn orders were up in Europe though from a low level, while Brazil’s saw a significant jump. The
continuous downward trend since 2007 in fabric orders in Europe was stopped and slightly reversed.
Brazil’s fabric orders on the other hand decreased slightly.

World yarn production jumped in the 2nd quarter by +22.4% as compared to the previous
quarter after having fallen continuously since the 2nd quarter 2007. All regions recorded
increases, especially South America with +44.9% followed by Asia with +23.3%, Europe with +2.2% and
North America with +1.5%. In comparison to last year’s quarter only South America and Asia saw
increases (+1.9% and +1.0%, respectively), while yarn production in North America and Europe were
still considerably below last year’s levels (-25.2% and -15.3%, respectively.

Fabric production also soared worldwide by +14.4% in the 2nd quarter of 2009 in comparison
to the previous one. Unlike global yarn production global fabric production increased only in Asia
(+16.7%) and North America (+7.8%) and fell slightly in Europe (-0.4%) and South America (-0.6%).
Year-on-year global fabric production was up by +3.2% due to higher outputs in Asia (+6.7%), while
North America, Europe and South America still recorded lower production levels of -22.5, -18.8 and
-3.1%, respectively.

Global yarn inventories were down by -3.0% in the 2nd quarter of 2009 as compared to the
previous one. Yarn stocks plummeted in South America by -15.3% and decreased in Asia by -3.4% but
remained stable in Europe and North America.On an annual basis yarn stocks were down by -1.3%
globally, with South America and Asia seeing a reduction of -6.1% and -1.7%. Europe saw a marginal
increase of +0.7%.

The level of fabric inventories fell worldwide by -4.5%, thus recording the lowest in years.
All regions contributed to this reduction: South America -6.9%, North America -5.1%, Asia -4.9% and
Europe -1.5%. In comparison to last year’s 2nd quarter, inventories dropped by -14.3% on a global
scale. This was a result of lower stocks in all regions with Asia recording a fall of -21.0%, North
America of -8.0%, South America of -6.9% and Europe of -1.3%.

In the 2nd quarter 2009 yarn order rose slightly in Europe by +2.4% and strongly in Brazil
by +12.0%. On an annual basis yarn orders were still considerably down by -10.4% in Europe but
jumped by +25.3% in Brazil. Fabric orders increased in Europe in comparison to the previous quarter
by +1,6% and decreased slightly by -0.8% in Brazil. Year-on-year fabric orders plummeted by in
Europe by -14.6% and in Brazil by -3.1%.

October 27, 2009