A major feature of textile markets in 2006 is the continued emergence of China as a manufacturing country. Very few markets have been unaffected by the massive volume of goods produced and exported from China.
The importation of cotton fibre into China to support the manufacturing was a major factor in forcing up the price of cotton fibre.
The GATT agreement to remove textile quotas at the end of 2004 has enabled further inroads for Chinese exports into Western textile markets.
CURRENCY CONVERSION
As most textiles raw materials are bought internationally in US Dollars, currency movements have a a strong impact on yarn and fabric prices. There has been a significant weakening of the dollar.
(12/01/04 - £=$1.85 from $1.59 at the start of 2003.)
The Euro has risen from $1.03 to $1.28 in the same period. While this is good news in terms of raw materials costs, it presents a major problem for manufacturers hoping to export to the USA.
COTTON FIBRE
At February 2006 Cotton Outlook reported a Cotton ''A'' index of 58.8 cents/lb. Cotton prices remain stable to firm.
