In the last fortnight, selling offers for Crude oil increased with the help of positive economic data emerged from the U.S.A, Germany and China. Price rally was not possible in Crude oil due to fall in export growth of China and more than forecasted turned down in unemployment rate of Germany in the month of December, 2011. Crude oil prices remained firm due to tension between Iran and U.S.A and increased very slowly. In the second half of the last fortnight, Crude oil prices remained firm as U.S.A inventories for energy product declined.

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Massive flood which covered several parts of Thailand forced numerous factories in low lying areas to shut-down temporarily. On top of this raw material shortage and disappearing export orders may take a year to recover but most textile producers will continue to pay wages. If the government fails to improve efficiency garment demand may decline but home textiles should continue to do well.

The second largest exhibitor country, Taiwan, came with a mix of interesting exhibitors. Strictly by invitation, the exclusive booth set up of Taiwan owned, Italian made brand of Kuan’s Living displayed their collections in several room settings, geared for the 3 levels of China cities. Kuan’s Living showroom in Shanghai showcases the best. Apart from Jacquard bedding fabrics which the Chinese very much like, they also introduced beddings made of linen to develop taste for natural fibers in China. With nine shops opened at the present moment: in Beijing, Shanghai, Suzhou, Hangzhou, Dalian, Changsha, Harbin, they plan to have 15 by the end of the year and 20-30 the year following. “The China market is very large”, said Teresa Li. “We want steady growth, not rapid growth so we have to be careful to ensure that each decision is made correctly”, she added. In Italy they have a showroom in Milan and an office. Everything is produced in Europe, none in China, but designed and catered to the China market.

China’s home textile industry was affected little by the economic downturn in the West.
Following the directive of the 12th Five-year plan, domestic growth continues, fuelling the rise of domestic brands. European luxury home texile brands want a piece of the action - China market’s expansion.

A textile guru is suggesting that entrepreneurs adapt to survive the 21st century's textile industry by creating more innovative and valued-added products, building up market demand, finding partnerships, and bringing products to the market as quickly as possible.

A fashion trend analyst of Cotton Incorporated recently flew from New York office to share with Thai textile/garment businesses her forecast on world fashion trends for next season’s Fall/Winter.

In the 1st quarter of 2011 global yarn and fabric production fell compared to the previous quarter but rose in comparison to the 1st quarter of 2010 The decrease in global yarn production resulted from lower outputs in Asia, Europe and South America. It has to be noticed here that the reduction of yarn production in Asia in the 1st quarter 2010 is mainly a consequence of lower output in China. Production in the 1st quarter in China is traditionally lower compared to any other quarter as a result of fewer working days due to the Chinese New Year. It is therefore important to note that compared to the 1st quarter of 2010 China’s yarn production increased in the 1st quarter of 2011. Only North America recorded an absolute increase in yarn production in the 1st quarter of 2011.

Trend analysis

WGSN highlights the key spring/summer textile trends seen at the LA Textile Show.