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Global yarn production up in Q2/18; fabric dips slightly

Dec '18
Global yarn production up in Q2/18; fabric dips slightly
Global yarn production increased by 5 per cent between Q1/18 and Q2/18 whereas global fabric production decreased from Q1/18 to Q2/18, according to the ITMF (International Textile Manufacturers Federation) State of Trade Report 2018, prepared by Olivier Zieschank, ITMF economist. It is an international forum for the world’s textile industries.

Higher output where observed in Egypt (+1.4 per cent), the US (+3.2 per cent), South Africa (+3.3 per cent), and globally in Asia, where the overall +5.7 per cent increase was led by Chinese Taipei and Korea, Rep. (respective growth rates of +8.1 per cent and +8.8 per cent). An opposite trend has been observed in all surveyed European countries, Brazil, and Japan. Forecasts for Q3/18 are only optimistic in Africa but the Q4/18 previsions turn positive in all regions except Brazil where stability is expected. Global yarn stocks decreased globally by -4.75 per cent. This is the effect of small contractions in Asia and Europe (between -3 per cent and -4 per cent), a +18 per cent increase in Brazil, and a -20 per cent average decrease in the African countries surveyed. Altogether, yarn stocks reached 85 per cent of their previous year’s level for the same quarter. Global yarn orders decreased by -6 per cent led by a strong reduction in the Brazilian market (-28 per cent). Yarn orders, however, increased in Africa and Europe by +5.7 per cent and +7.5 per cent, respectively.

Global fabric production slightly decreased from Q1/18 to Q2/18. The +0.25 per cent contraction reflects a -6 per cent output reduction in Africa, a decrease of -0.5 per cent in Asia, a +1.6 per cent increase in Europe, and a +3.7 percent jump in Brazil. The world output level now reaches 87 per cent of its Q2/17 level. Fabric production in all regions is expected to decrease in Q3/18 except in Brazil where stability is foreseen. Q4/18 should see improvements in all regions. In Q2/18, the global fabric stock level grew by almost +2 per cent. It was driven by Brazil’s stock increase of +7 per cent, which brought global fabrics stocks 11 per cent above their Q2/17 level. Stocks remain stable in Asia, Europe, and the US. They continue to steadily drop in Egypt. Global fabric orders have risen by +43 per cent at world level in Q2/18, led by a +65 per cent increase in Brazil that followed an unusually low first quarter. Orders in Asia and Europe have stagnated and contracted in Egypt, respectively. Global fabric orders are now 16 per cent above their level observed in Q2/17. (GK)

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