March yarn output in China expanded 10.7% from March 2007 to reach almost 1.8 million tons, led by 37.1% year-over-year gains in Henan Province. While this volume is up from last year, the annual gains gradually have slowed over the last eighteen months, reflecting the government’s efforts at trying to slow economic growth and the reduction in the export tax rebate available to Chinese textile manufacturers.

For the first quarter, growth in yarn output across China expanded 9.0% from year-ago levels. The six largest yarn-producing provinces—Henan, Hebei, Hubei, Jiangsu, Shandong, and Zhejiang Provinces—saw collective first quarter yarn production expand 10.2% from the first quarter of 2007. This faster growth in the larger producing provinces continues as a trend over recent years that implies Chinese yarn production is becoming more concentrated in the larger-producing provinces. Only eight years ago, two-thirds of total Chinese yarn production came from these six provinces. By 2008, these same provinces accounted for 80% of the country’s yarn output.

Source： Globecotnews