Global yarn production increased by 5% in Q2/2018, while global fabric production fell, according to the latest figures published by the International Textile Manufacturers Federation (ITMF).
The report states that global yarn production rose by 5% between Q1/18 and Q2/18, with higher output observed in South Africa (+3.3%), the US (+3.2%) and Egypt (+1.4%). There was also a rise in Asia where the overall 5.7% increase was led by Korea Republic (+8.8%) and Chinese Taipei (+8.1%).
However, the opposite was witnessed in all surveyed European countries, Brazil and Japan. Forecasts for Q3/18 are suggested to only be optimistic in Africa, but the Q4/18 previsions turn positive for all regions except Brazil, where stability is expected.
Meanwhile, global yarn stocks fell globally by -4.75%. This, the ITMF states, is the effect of small contractions in Asia and Europe (between -3% and -4%), a -20% decrease in all surveyed African countries, and an 18% rise in Brazil. Despite this, yarn stocks reached 85% of the level achieved in the same quarter last year (Q2/17).
Global yarn orders decreased by -6% globally. Led by a strong reduction in the Brazilian market (-28%). However, orders increased in Europe (+7.5%) and Africa (+5.7%).
Global fabric figures
Unlike yarn production, global fabric production slightly decreased between Q1/18 and Q2/18, the figures show. The +0.25% contraction reflects a -6% output reduction in Africa, a decrease of -0.5% in Asia and +1.6% rise in Europe, and a +3.7% increase in Brazil.
The world output level has now reached 87% of its Q2/17 level. However, fabric production is expected to decrease in all regions in Q3/17, except Brazil where stability is anticipated. Meanwhile, Q4/18 is expected to show improvements in all regions.
Global fabric stocks grew by almost +2% in Q2/18. This increase was largely driven by Brazil’s growth of +7%, which brought global fabric stocks 11% above their Q2/17 level. Stocks remain stable in Asia, Europe and the US. However, they continue to fall in Egypt.
Global fabric orders, meanwhile, rose by +43% globally in Q2/18, led by a sharp +65% increase in Brazil that followed an unusually low first quarter. Orders in Asia and Europe stagnated, while they contracted in Egypt. Global fabric orders are now 16% above the level witnessed in Q2/17.
