Dublin-based research company Research and Markets has reported an significant increase in prices for synthetic fibre and fibre intermediate prices in early 2007 in its new study, ‘Global Trends in Fibre Production, Consumption and Prices, May 2007 Edition’.

It states that global man-made fibre production continued to rise in 2006 but at a slower pace than in 2005. In 2006, output was up 3.9% to 37.5 million tons—due to strong growth in China—following a 5.8% hike in 2005. Synthetics accounted for a larger proportion of the 2006 increase, particularly in the polyester sector, though cellulosics were also up 10%. Prices for synthetic fibres and fibre intermediates increased significantly in the first four months of 2007, with increases mostly taking place in Asia.

Output of natural fibres rose by 1.6% in 2006 after a 5.8% decline in 2005. The rise was driven by a 1.7% increase in cotton output following a 6.2% decrease in 2005. However, the decline in the wool clip continued. The share of natural fibres in total fibre output fell from 41.9% to 41.4%. Cotton demand is expected to rise by 4.4% in the 2006/07 season, mainly as a result of higher usage in China and South Asia. Output, meanwhile, will be up by 2.6% according to the International Cotton Advisory Committee (ICAC).

Cotton buyers remain resistant to price increases and, with no major changes in supply or demand, prices will remain steady. According to the ICAC, the cotton price will average 62 cents/lb in 2006/07, 4 cents/lb more than in 2005/06. It will remain at that level, or slightly higher, for the 2007/08 season. Wool prices rose sharply in the latter part of 2006 and in early 2007 due to concerns over the effect of the drought on the Australian clip combined with rising demand at the retail level and a consequent increase in orders in the wool textile industry. However, global demand is being sustained largely by consumption in China.