Approaches to Value and Factors Considered with Synthetics, Cotton and Yarn

The textile industry has experienced radical changes in the last five years. A combination of increasing Asian competition along with currency devaluations and a weak U.S. dollar, contributed to the current price fluctuations and output decline in the U.S. textile and apparel industries. JCM checks the historical trend in the published price index of cotton, on a weekly basis and using a percentage of this index, as an advance rate, to help address and possibly mitigate this risk. Competition continues to shrink, with major synthetics, fabrics and greige goods customers exiting the marketplace. As the market continues to shrink, the absorption factor on the raw materials (synthetic/yarn and cotton) becomes more of a negative liquidation factor.


When appraising a Company that utilizes synthetics, yarn and/or cotton in manufacturing it is important to understand how the inventory is used in the manufacturing process. To that end, we also look at who would purchase the raw material inventory if a liquidation were to occur or how it would be consumed if a build out of raw materials to finished goods were to occur.

Warping – Depending on the type of fabric to be made, hundreds of spools of yarn are simultaneously rolled onto one large spool, which is referred to as a warp beam. This process is called warping. The number of spools of yarn used in a beam and the type of yarn (either all nylon, all polyester, or a combination of both) is determined by the product to be produced. Each fabric has a different combination of the type of yarn and the number of threads on a beam.

Weaving – Each warp thread is passed through one of two or more vertical frames called harnesses. The number of harnesses depends on the complexity of the weave. In the harness, each warp is threaded through a narrow opening in one of many strings or wires called heddles. The heddles hold the individual thread in place and prevent them from tangling. The warp threads then stretch over the weaving frame. The weaver then winds the weft thread around via air jet looms that transport the thread over and under the warp via air propulsion. The weaving process begins when the weaver lifts the harness that holds the odd-numbered threads. The weaver lowers the first harness and pushes the newly woven row into place with a device called the beater. The beater is in a frame located in front of and parallel to, the harnesses. It has comblike “teeth” made of steel wires that push each weft row compactly into place to tighten the weave. To weave the next row, the weaver raises the second harness and passes the shuttle through the sheet: The weaving of each row involves the same process. The finished cloth is wound around a bar called the apron beam, or cloth beam, at the front of the loom.

Glossary of Terms


Things to remember

  • Understand the operations of the Company.
  • Be familiar with regional and/or seasonal market fluctuations.
  • Understand the nomenclature and unit of measure.
  • Determine the best market for each type of asset.


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Key Terms When Appraising and Liquidating Synthetic Acetate and Polyester Fabrics

A manufactured fiber formed by compound of cellulose, refined from cotton linters and/or wood pulp, and acedic acid that has been extruded through a spinneret and then hardened.
A term applied to a yarn or a fabric that is made up of more than one fiber. In blended yarns, two or more different types of staple fibers are twisted or spun together to form the yarn. Examples of a typical blended yarn or fabric is polyester/cotton.
A process for finishing fabrics in which such special effects as high luster, glazing, embossing, and moiré are produced.
A material derived from the cell walls of certain plants. Cellulose is used in the production of many vegetable fibers, as well as being the major raw material component used in the production of the manufactured fibers of acetate, rayon, and triacetate.
A person or a company which buys grey goods and sells them as finished fabrics. A converter organizes and manages the process of finishing the fabric to a buyers’ specifications, particularly the bleaching, dyeing, printing, etc.
A system of measuring the weight of a continuous filament fiber. In the United States, this measurement is used to number all manufactured fibers (both filament and staple), and silk, but excluding glass fiber. The lower the number, the finer the fiber; the higher the number, the heavier the fiber. Numerically, a denier is the equivalent to the weight in grams of 9,000 meters of continuous filament fiber.
A woven fabric construction made by interlacing two or more sets of warp yarns with two or more sets of filling yarns. The most common double weave fabrics are made using a total of either four or five sets of yarns.The right side or the better-looking side of the fabric.
A piece of fabric that is sewn to the collar, front opening, cuffs, or arms eye of a garment to create a finished look.
A glossy, soft, finely-ribbed silk-like woven fabric made from cotton, silk, or manufactured fibers.
The basic entity, either natural or manufactured, which is twisted into yarns, and then used in the production of a fabric.
A manufactured fiber of indefinite length (continuous), extruded from the spinneret during the fiber production process.
In a woven fabric, the yarns that run cross the fabric from selvage to selvage, and which run perpendicular to the warp or lengthwise yarns. Also referred to as the weft.
A fabric that has gone through all the necessary finishing processes, and is ready to be used in the manufacturing of garments.
An unfinished fabric, just removed from a knitting machine or a loom. Also called grey goods
An insulation, padding, or stiffening fabric, either sewn to the wrong side of the lining or the inner side of the outer shell fabric. The interlining is used primarily to provide warmth in coats, jackets, and outerwear.
Fabrics used to support, reinforce and give shape to fashion fabrics in sewn products. Often placed between the lining and the outer fabric., it can be made from yarns or directly from fibers, and may be either woven, nonwoven, or knitted. Some interfacings are designed to be fused (adhered with heat from an iron), while others are meant to be stitched to the fashion fabric.
A fabric that is used to cover the inside of a garment to provide a finished look. Generally, the lining is made of a smooth lustrous fabric.
A machine used for weaving fabrics.
A single filament of a manufactured fiber, usually made in a denier higher than 14. Monofilaments are usually spun singularly, rather than extruded as a group of filaments through a spinneret and spun into a yarn. End-uses include hosiery and sewing thread.
Produced in 1938, the first completely synthetic fiber developed. Known for its high strength and excellent resilience, nylon has superior abrasion resistance and high flexibility.
A manufactured fiber, most often used in sweaters or pile fabrics, where little or no pressing is recommended, as the fiber has a low softening or melting point. However, it has also been successfully used in blends with wool for the purpose of minimizing shrinkage and improving the shape retention in garments.
A manufactured fiber characterized by its light weight, high strength, and abrasion resistance. Olefin is also good at transporting moisture, creating a wicking action. End-uses include activewear apparel, rope, indoor-outdoor carpets, lawn furniture, and upholstery.
A twisting together of two or more single yarns in one operation.
A manufactured fiber introduced in the early 1950s, and is second only to cotton in worldwide use. Polyester has high strength (although somewhat lower than nylon), excellent resiliency, and high abrasion resistance. Low absorbency allows the fiber to dry quickly.
A manufactured fiber characterized by its light weight, high strength, and abrasion resistance. Polypropylene is also good at transporting moisture, creating a wicking action. End-uses include activewear apparel, rope, indoor-outdoor carpets, lawn furniture, and upholstery.
A manufactured fiber composed of regenerated cellulose, derived from wood pulp, cotton linters, or other vegetable matter. Today, various names for rayon fibers are taken from different manufacturing processes. The two most commonly used production methods for rayon are the cuprammonium process and the viscose process.
A metal nozzle type device with very fine holes used in the spinning process of manufactured fibers. The spinning solution is forced or extruded through the small holes to form continuous filament fibers. The holes in the spinneret can vary in diameter to produce fibers of various denier.
A manufactured fiber, which like acetate, is made by modifying cellulose. However, even more acetate groups have been added to create this fiber. Triacetate is less absorbent and less sensitive to high temperatures than acetate. It can be hand or machine washed and tumble dried, with relatively good wrinkle recovery.
A warp knit fabric in which the fabric is formed by interlooping adjacent parallel yarns. The warp beam holds thousands of yards of yarns in a parallel arrangement, and these yarns are fed into the knitting area simultaneously. Sufficient yarns to produce the final fabric width and length are on the beam. Tricot knits are frequently used in women’s lingerie items such as slips, bras, panties, and nightgowns.
The most common type of rayon. It is produced in much greater quantity than cuprammonium rayon, the other commercial type.
In woven fabric, the yarns that run lengthwise and is interwoven with the fill (weft) yarns.
A type of knitted fabric construction in which the yarns are formed into stitches in a lengthwise manner. Warp knits are generally less elastic than weft knits. Common examples of warp knits are tricot knits and raschel knits.
In woven fabric, the filling yarns that run perpendicular to the warp yarns.
A type of knitted fabric in which yarns are formed into stitches in widthwise manner. Common examples of weft knits are circular knits and flat knits.
Fabrics composed of two sets of yarns. One set of yarns, the warp, runs along the length of the fabric. The other set of yarns, the fill or weft, is perpendicular to the warp. Woven fabrics are held together by weaving the warp and the fill yarns over and under each other.
A continuous strand of textile fibers created when a cluster of individual fibers are twisted together. These long yarns are used to create fabrics, either by knitting or weaving.