Market analysis: Textiles
Market analysis: Textiles, April 2008
Dollar weakness undermines Europe’s exporters
The decline in the value of the US dollar in relation to the Euro is creating an ever-intensifying headache for European exporters. Competition with their US counterparts can now be based solely on quality since American exporters are in a position to offer significantly lower prices.
Market analysis: Textiles, March 2008
Fears of a shortage come to nought
In Europe, a spell of generally mild weather has ensured adequate collection volumes as well as relatively stable prices. In the USA, meanwhile, sorting companies and exporters of used clothing are worried about profit margins.
For previous market analyses: click on the title to download the market analysis in PDF format.
Market analysis: Textiles, January/February 2008 (PDF, 829 kB, 1 page)
Abundance of original material
In Europe, there is an abundance of original material available because collectors have placed additional containers to match the strong demand for used clothing, notably from Africa and eastern Europe. In North America, demand for used clothing also remains strong - both domestically and for export. High-quality used clothing is easy to sell while the wiping grades are also attracting plenty of buyer interest.
Market analysis: Textiles, December 2007 (PDF, 232 kB, 1 page)
2007 - a year of healthy demand and cost pressures
Sorters are likely to look back on this year as one of good demand for used clothing but also of high raw material prices. For companies in Europe, a weak US dollar, high freight rates and the possibility of less favourable economic conditions ahead are combining to create a degree of nervousness within the trade. By contrast, the weakness of the greenback is continuing to assist US exporters.
Market analysis: Textiles, November 2007 (PDF, 255 kB, 1 page)
Full speed ahead for sorting operations
Sorting companies are operating at full capacity on both sides of the Atlantic - although under somewhat different market conditions. In particular, US exporters are benefitting in demand terms from the continuing weakness of the dollar in relation to the Euro. Furthermore, freight rate increases between the USA and Asia have been lower than many traders expected.
Market analysis: Textiles, October 2007 (PDF, 300 kB, 1 page)
Collectors urged to preserve market balance
The end of the summer holiday period and the start of the traditional autumn collections by charitable and commercial organisations have combined to improve the supply of original material in Europe. Most of Europe’s textile recyclers regard the market outlook as positive but are urging price restraint on the part of collectors.
Market analysis: Textiles, September 2007 (PDF, 550 kB, 1 page)
Collectors urged to preserve market balance
The end of the summer holiday period and the start of the traditional autumn collections by charitable and commercial organisations have combined to improve the supply of original material in Europe. Most of Europe’s textile recyclers regard the market outlook as positive but are urging price restraint on the part of collectors.
Market analysis: Textiles, July/August 2007 (PDF, 251 kB, 1 page)
July brings a shortage of originals
Recent years have brought a notable reduction in volumes of original material generated by summer collections in Europe. Since this trend appears likely to continue in years to come, a change of strategy may be required among sorting companies.
Market analysis: Textiles, June 2007 (PDF, 299 kB, 1 page)
A tale of two continents
Analyses of the textiles recycling market differ on either side of the Atlantic. In Europe, a reasonable supply/demand balance for original material is creating scope for both collectors and sorters to turn a profit. In North America, however, the cost of original materials has continued to escalate, thereby seriously denting sorting companies’ margins.
Market analysis: Textiles, May 2007 (PDF, 384 kB, 1 page)
Spring collections end the drought in Europe
After struggling to secure sufficient volumes of original material to satisfy demand, spring collections have come to the rescue of Europe’s sorters. Nevertheless, margins remain under pressure as a result of high purchasing prices. In North America, however, supplies of original material are still proving difficult to source for domestic sorters, not least because of the huge volumes flowing into the export channel for sorting overseas.
Market analysis: Textiles, April 2007 (PDF, 344 kB, 1 page)
High purchasing prices put sorters in jeopardy
In many parts of Europe, the spiralling price of original material is forcing graders to give serious consideration either to curtailing production or to closing down altogether. In North America too, runaway buying prices have added hugely to sorters’ costs and decimated their profit margins.
Market analysis: Textiles, March 2007 (PDF, 482 kB, 1 page)
Market balance threatened by ‘fast-buck’ operators
Owing to healthy demand for used clothing, the sector is witnessing the emergence of new companies whose only motivation, according to industry experts, is the prospect of a quick profit. The widespread fear is that their actions will disrupt the delicate balance between supply and demand. In both Europe and North America, established sorting companies are already feeling the heat of higher buying prices and insufficient returns from sales.
Market analysis: Textiles, January-February 2007 (PDF, 303 kB, 1 page)
Sorters scrambling for supplies
Following a stable end to 2006 in Europe, the New Year has begun with a familiar problem: supply of original material is being easily outstripped by demand, leading to a desperate battle among sorters to secure volume. In North America too, sorting companies’ margins are being squeezed by the high prices they are forced to pay for original material. Meanwhile, Kenya has issued an import ban on many grades of sorted clothing
Market analysis: Textiles, December 2006 (PDF, 328 kB, 1 page)
A more positive year for textile recyclers
The textiles recycling sector is still facing some intractable problems but, on the whole, 2006 has brought somewhat brighter fortunes. At present, supply and demand are broadly in balance; however, sorters in Europe fear that a severe winter may lead to another shortage of original material.
Market analysis: Textiles, November 2006 (PDF, 449 kB, 1 page)
Supply shortage pushes up American prices
Europe’s collectors and sorters are generally satisfied with conditions in the used clothing market given that supply is sufficient and demand for sorted grades is quite healthy. Across in North America, sorters’ margins have come under pressure as a result of a shortage of material and resultant higher prices.
Market analysis: Textiles, October 2006 (PDF, 401 kB, 1 page)
Contented inthe comfort zone
A relatively healthy balance betweenoriginals supply and demandhas been achieved in Europe,such that most experts believe anymajor price movements may destroythis comfort zone. Meanwhile, NorthAmerican exportersare reporting verystrong demand from Africa as well as anoticeable upturn in sorting activities ina number of Asian countries.
Market analysis: Textiles, September 2006 (PDF, 316 kB, 1 page)
Prices confound the fundamentals
There are fears that some of Europe’s leading sorting companies are risking their already-thin margins by paying excessively high prices for their supplies of original material. Availability of originals will improve over the coming weeks as charitable organisations embark on their autumn collections. Generation of original materials has also been slow in North America over recent months but, here too, the flow is expected to improve during September.
Market analysis: Textiles, July-August 2006 (PDF, 370 kB, 1 page)
Healthy demand fails to inspire price levels
The seasonal downturn in original material collection levels in Europe has coincided with decent run of demand. Buyers from Eastern Europe and North Africa have been particularly active. The summer holiday period has also brought a significant reduction in collection activity in North America. Despite good demand, however, prices have failed to make gains.
Market analysis: Textiles, June 2006 (PDF, 346 kB, 1 page)
Brighter now - but fears for the future
With pressure building on Western and Central European sorting companies to pay higher prices for original material, there are fears that these additional costs could ultimately lead to further capacity closures. Meanwhile, Canadian sorting companies are struggling to compete with their US counterparts owing to the relative weakness of the US dollar.
Market analysis: Textiles, May 2006 (PDF, 228 kB, 1 page)
Spring collections boost supply
In Europe, the shortage of original material has finally ended. Spring collections have begun yielding large volumes of material and demand for sorted clothing from Africa, Asia and Eastern Europe has been more than satisfactory. In the relatively strong North American textiles recycling market, there has been an improvement in prices of original material but overall quality levels are giving cause for concern.
Market analysis: Textiles, April 2006 (PDF, 228 kB, 1 page)
Demand for originals outpaces supply
Prolonged winter weather conditions across many parts of Europe have produced an imbalance in the original material market, with demand currently running well ahead of supply. Sorters have responded either by reducing capacity or by paying higher prices to secure their supplies. In North America, demand for original material is still running ahead of supply despite a recent improvement in collection volumes.
Market analysis: Textiles, March 2006 (PDF, 216 kB, 1 page)
Winter weather impacts on supplies
The last few weeks have produced high drama in the European textiles recycling sector. Severe winter weather in many countries has hampered collections of original material, with the result that demand is currently racing far ahead of supply. In North America, volumes of original material remain adequate despite recent snow storms on the US East Coast.
Market analysis: Textiles, January/February 2006 (PDF, 170 kB, 1 page)
Positive start to 2006
Sorted original material from collections proved to be a very good seller in December, with healthy demand coming from both Europe and Africa. With stocks now at lower levels, price increases on some grades may not be too far away. The North American textiles recycling industry has also enjoyed an encouraging start to the New Year, both in terms of collections and orders.
Market analysis: Textiles, December 2005 (PDF, 161 kB, 1 page)
German sorters burdened by cost pressures
European textile sorters have been extremely busy over recent months although new landfill legislation in Germany is exerting huge pressure on margins. Meanwhile, business conditions are still favourable for North America’s textile recyclers but the fast-approaching Christmas holiday period will lead to a decided slow-down.
Market analysis: Textiles, November 2005 (PDF, 198 kB, 1 page)
Market cheered by export upturn
Exports of used clothing to Africa from both Europe and North America are very healthy at present. Some of the grades that had previously proved very hard to sell are being moved once again - although at quite low prices. In Europe, the excess of original material in the marketplace has been exacerbated by autumn collections. In North America, there has been a slight shortage of wiping rags and, as a result, prices have improved slightly.
Market analysis: Textiles, October 2005 (PDF, 137 kB, 1 page)
Growing demand for high-quality sorted clothing
In Europe, premium and No 1 qualities are proving saleable to Eastern Europe and Africa in particular, with the result that many sorting companies have increased their capacities. In North America, material generation has been affected by hurricanes Katrina and Rita; there is currently a slight shortage of wiping cloth material and demand is quite firm.
Market analysis: Textiles, September 2005 (PDF, 172 kB, 1 page)
European warehouses start to fill
A piling-up of original material in European sorters’ warehouses over the last few weeks has coincided with an improvement in export orders from both Eastern Europe and Africa. Europe’s textile recyclers are now hoping that there will be a similar improvement in customers’ cash flow.
Market analysis: Textiles, July/August 2005 (PDF, 155 kB, 1 page)
Widespread abundance of original material
In both Europe and North America, collections and containers have generated large volumes of original material. In Europe, sales of sorted used clothing have diminished due to the traditional summer lull; demand from Africa has slowed while orders from Eastern Europe have come to a virtual standstill. By contrast, supreme quality clothing is in high demand and sorting companies have sold almost all their available supplies. Business remains fairly strong in North America: a five-month period characterised by a tremendous shortage of original material came to an end in July when collections and containers again began yielding large volumes. Prices have fallen as a result.
Market analysis: Textiles, June 2005 (PDF, 115 kB, 1 page)
A market of contrasts
The European textile recycling industry is continuing to struggle with a surplus of original material and its problems are likely to be magnified in the coming weeks as holidays trigger a reduction in sorting activity. By contrast, original material is currently in short supply in North America.
Market analysis: Textiles, May 2005 (PDF, 210 kB, 1 page)
Spring brings surge in volumes
With the arrival of spring, collection volumes in Europe have once again increased to the extent that the recycling sector finds itself under renewed pressure. To make matters worse, African buyers are continuing to ask for highly-fashionable clothing which European consumers are less inclined to discard. In North America, increased generation of originals has been more than offset by strong demand.
Market analysis: Textiles, April 2005 (PDF, 184 kB, 1 page)
Trade counts cost of import taxes
Europe’s sorters are barely able to satisfy renewed demand from Africa because all buyers seem to be seeking those goods which make up an ever-declining proportion of original material. Although supply is also an issue for North America’s sorting companies, the region’s textile recycling industry remains reasonably busy and business conditions are generally good.
Market analysis: Textiles, March 2005 (PDF, 166 kB, 1 page)
Collections frozen by winter storms
Collections in Europe have been hit by fierce winter conditions although it remains to be seen whether this will lead to a shortage of unsorted used clothing for the first time in many years. European and North American exporters are encountering severe problems in the East African markets owing to the fact that some governments in the region are imposing huge duty increases on imported second-hand clothing.
Market analysis Textiles, January 2005 (PDF, 158kB, 1 page)
African countries raise import taxes on used clothing
Due to generally mild winter conditions, there is still plenty of original material in the European marketplace. Exports to Africa and Eastern Europe have been slowly in January and are not expected to pick up over the next two or three months. By contrast, shipments from North-America to Africa are still gaining momentum on the back of a weak US dollar. The only snag is that several African countries have imposed huge tax increases - 100% in the case of Tanzania - on second-hand clothing imports.
Market analysis: Textiles, December 2004 (PDF, 220 kB, 1 page)
Strong Euro hampers European clothing exports
A huge surplus of original material is overhanging the European market and prices remain at a low ebb. On a brighter note, sorting companies claim that the fourth quarter of this year has been ‘satisfactory’, with good demand from Africa and Eastern Europe. On the back of a still weakening US dollar, exports from North America to Africa and Asia remain very strong while buyers in other regions, notably Eastern Europe, have been turning to North America for their material.
Market analysis: Textiles, November 2004 (PDF, 171 kB, 1 page)
Some improvement - but no miracle recovery
Although there is still an oversupply of original material in Europe, the situation has improved somewhat for textile recyclers in the last four weeks. There has been an increased demand from Eastern Europe and Africa for sorted, high-quality grades, although the lower qualities remain very hard to sell. In North America, meanwhile, business has been relatively brisk.
Market analysis: Textiles, October 2004 (PDF, 111 kB, 1 page)
Germany pleads for recycling levy on clothing
The major problem for Europe’s textile recycling sector continues to be the ever-decreasing quality of original material from collections. In an attempt to overcome this crisis, the German textile recycling association has called for a take-back system covering all collected used clothing, to be funded by a recycling fee on new clothing. However, market analysts believe the proposal is unlikely to be turned into a reality. In North America, meanwhile, there is a relative shortage of original material and, as a result, domestic prices have firmed slightly.
Market analysis: Textiles, September 2004 (PDF, 77 kB, 1 page)
More than 40% waste in collection containers
In Europe, the traditional summer lull brought low demand and slow trade during August. As the crisis continues, more textile sorting companies are facing bankruptcy while the quality of original material from collections continues to worsen by the day. A recent test threw up the staggering statistic that, of the material accumulated in a number of collection containers, more than 40% proved to be waste. In the USA, by contrast, business has been relatively strong throughout the summer months; there has been good demand for original material and prices have been firming.
Market analysis: Textiles, August 2004 (PDF, 210 kB, 1 page)
Bankruptcy threat hangs over Europe’s sorting companies
In Europe, original material has proved hard to market during the summer holiday months. In Germany and France, the structural crisis in the European textile recycling sector is beginning to take its toll: several renowned companies have been forced to file for bankruptcy because they were no longer able to fulfil their financial obligations. And it is feared that more firms will have to shut up shop in the near future.
Market analysis: Textiles, June 2004 (PDF, 138 kB, 1 page)
Far East floods market with low-priced garments
In the first half of 2004, the European textile recycling industry has seen a continuation of the deep structural crisis that has propelled many companies into serious financial difficulties over the last two years or so. Despite regular discussions and consultation exercises, no solutions have yet been found to the sector’s many problems. There is still a huge oversupply of original material and sorted grades, with collectors and sorters both complaining about the need to store ever-increasing volumes of used clothing simply because sorting companies are unable to sell the goods.
If you do not have the Acrobat Reader to view PDF files, you can download it here free of charge.