China’s yarn output continued its surge in April, posting a total of 1.61 million tons, an 18 percent year-on-year gain, as well as a 1.2 percent increase from March. New capacity and swelling fixed asset investment were cited as the major reasons for the rapid production pace of 2007. For the Chinese marketing year, September 2006 till August 2007, cumulative yarn output has reached 12.182 million tons, which is up 19.07% year on year. For the U.S. marketing year, August 2006 till July 2007, cumulative output has reached 13.75 million tons, which is about a 22 percent gain versus a year ago. Regardless of the marketing year used, China is easily on track to produce more than 18 million tons of yarn.