ZURICH, Switzerland — June 14, 2018 — Global yarn production decreased by 23 percent between Q3/17 and Q4/17. Output reductions in Brazil (-23 percent), Asia (-14 percent), and the U.S.A. (-4 percent) have balanced out the increase in Africa (+12 percent) and Europe (+15 percent). All surveyed countries, apart from Brazil and Germany, expect a decrease in yarn output in Q1/2018. Global yarn stocks were stable between Q3/17 and Q4/17. A reduction in Brazil (-11 percent), Egypt (-9 percent), and Europe (-4percent) was cancelled out by a 3 percent increase in Asia. Altogether, yarn stocks reached 96 percent of their previous year level for the same quarter. Yarn orders increased on average between Q3/17 and Q4/17 (+7 percent). The order contraction in Korea Rep. (-8 percent) has been compensated by positive trends in the other reporting countries.
Global fabric production decreased from Q3/17 to Q4/17 by -2 percent. A respective -12 percent and -2 percent contraction in Brazil and Asia drove the world average in the negative range. Fabric output, however, increased by 6 percent and 10 percent in Africa and Europe respectively. The world output level reached 95 percent of its Q4/16 level. Europe and Brazil are expected to increase production in Q1/18. In Q4/17, the global fabric stock level slightly grew (+3 percent). This increase was driven by Brazil (+15 percent) and brought the index of fabrics stocks 3 percent above the Q4/16 level. In 2017, stocks have been stable in Asia and the U.S.A. They increased steadily in Europe and Brazil and constantly decreased in Egypt. On average, fabric orders have reduced by -23 percent between Q3/17 and Q4/17 in the countries under review. The growth of +11 percent and +2 percent in Egypt and Europe was not sufficient to compensate for the reductions of -31 percent in Brazil. The global index for fabric orders decrease by 3 percent since Q4/16.
Posted June 14, 2018
Source: ITMF, International Textile Manufacturers Federation