The global yarn production has improved in the second quarter of 2017, according to the International Textile Manufacturers Federation (ITMF). It increased in Asia, Europe, and Brazil and slightly declined in the USA. The combined effect brings the global yarn production to a level slightly higher than it was in the same period of 2016. Global fabric production increased as well. The output in Asia, Africa, and Brazil improved while it was stable in the USA and Europe.

The apparent stability of global yarn stocks between the first and the second quarter this year is the composite result of a strong increase in Brazil and a strong decrease in Egypt. Global yarn stocks have also improved compared to the same quarter a year earlier. Global yarn orders have fell in all regions in the second quarter of 2017.

Worldwide fabric stocks slightly increased, with the most significant change observed in Brazil for the second quarter in a row. The fabric stocks, however, haven’t reached their Q2 2016 level yet. Asian and European fabric orders remained stable in and rose in Brazil and Africa. In comparison to the second quarter of last year, the Asian and Brazilian fabric orders declined significantly, while they slightly increased in Europe and Africa.

For the third quarter, estimates indicate a stable trend in both global yarn and fabric production. For the final quarter of 2017, the global outlook for both yarn production and fabric output signal further rise, according to the federation.

Production

In the second quarter of 2017, global yarn production rose by 11%, a lower rate of growth compared to the last quarter. The drivers of the growth level are Asia and Brazil with their respective 12% and 11% increases. Yarn production has decreased by 10% in the USA and by 18% in Africa since the first quarter of 2017.

Global fabric production improved by almost 9% in the second quarter of 2017, with the most significant increase in Brazil, Asia, and Africa (10.4%, 9.8%, 9.2% respectively). The output in the USA and Europe remained stable. The situation has improved compared to the same period last year, with an increase of global fabric output of almost 4%.

Global stocks

Global yarn stocks decreased by 1% in the second quarter of 2017. Asia, Europe, and Brazil saw their yarn inventories increased by 0,7%, 2.3%, and 11.5% but the world average is driven down by a 12% decrease of yarn stocks in Egypt. The stocks improvement of 13% in comparison to the second quarter of 2016 is a composite effect of relatively slight variations in Europe and Asia, a sharp decrease of nearly 40% in Brazil, and a strong increase of 112% in Egypt.

Worldwide fabric stocks rose by 3.3%. Brazil experienced a strong increase of 23%, while variations in all other regions ranged within the +/- 3% margin. Global fabric inventories decreased by 8% compared to the same period last year. The strongest decrease is observed in Brazil (-30%). Asia and the USA are fairly stable, and Europe’s stocks raised by 7%.

Orders

In the second quarter of 2017, European yarn orders decrease by almost 7%. Reductions of 6% and 4% were recorded in Brazil and Asia, respectively. Compared to the same period of 2016, yarn orders in Europe remained stable. They decreased in Brazil and Asia by 17% and 14%, respectively.

The 9% increase in global fabric orders is driven by Brazil and Egypt (+13% and +16% respectively). During the quarter, fabric orders have been stable in Asia and slightly decreased in Europe. They, however, show a relatively strong decrease with respect to the same quarter a year before (21%). This is mainly due to falling orders in Brazil and Asia (-27% and -17%).

www.itmf.org