Article: YARN SALES SLOWDOWN -- IS IT SEASONAL OR WORSE?

SPINNERS WONDER IF WEAK YARN DEMAND IS JUST SUMMER BLUES OR A DEEPER PROBLEM

Are U.S. yarn mills going through the typical summer blahs or does the current slowdown suggest a deeper dilemma?

Nobody in the yarn business is happy with yarn prices. The impact of the Asian economic crisis is spreading to almost everybody. Smaller yarn mills say larger operations are becoming too aggressive, particularly in pricing. Some companies are troubled about additional yarn capacity they expect in markets that are already extremely oversupplied.

"This summer slump appears to be a little more severe than normal," noted one industry observer.

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