Yarn & fabric output down in Q1/18

Yarn & fabric output down in Q1/18

Global yarn production decreased by -9 per cent between Q4/17 and Q1/18 while global fabric production also dipped from Q4/17 to Q1/18 by -10 per cent at world level.

Global yarn production decreased by -9 per cent between Q4/17 and Q1/18. Output reductions in Africa (-13 per cent), Asia (-11 per cent), and Europe (-1.5 per cent) have cancelled out the increase in Brazil (+12 per cent) and the relatively small improvement in the USA (+3 per cent). Most responding countries from Africa, Asia, and North America are optimistic about the evolution in Q2/18 while Europe and Brazil expect a decline in production. Global yarn stocks decreased in all regions in Q1/18 except in Brazil (+1.5 per cent). The strongest reduction occurred in Asia (-6 per cent), followed by Europe (-3 per cent), and Egypt (-1.5 per cent). Altogether, yarn stocks reach 89 per cent of their previous year level for the same quarter. Global yarn orders decreased in all countries by -5 per cent on average, except in Japan where it increased by +2 per cent.

Global fabric production decreased from Q4/17 to Q1/18 by -10 per cent at world level. It fell by -12 per cent in Asia, -5 per cent in Africa and -2 per cent in Europe. It increased by +1 per cent in Brazil. The world output level now reaches 96 per cent of its Q1/17 level. South Africa, Pakistan, and Turkey expect a further increase in fabric production in Q2/18. All other countries foresee stability or decrease. In Q1/18, the global fabric stock level grew by +1 per cent. It was driven by Brazil’s stocks improvement of +5 per cent, which was sufficient to bring fabrics stocks 13 per cent over their Q1/17 level. Fabric stocks remain stable in Asia, Europe, and the USA. They continue to steadily drop in Egypt and South Africa and constantly increase in Brazil. The global fabric orders have reduced between Q4/17 and Q1/18 by 6 per cent. Europe’s small improvement (+2 per cent) was balanced out by reductions in Brazil and Africa (-10 per cent and -18 per cent, respectively), which brought the global index to 88 per cent of its previous year level.

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