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Web Exclusive | March 2017

Rise in global fabric output

Global fabric output increased in Q4/2016, while global yarn production fell Global fabric output is expected to improve in Q1/2017 and remain unchanged in Q2/2017. Global yarn production should remain unchanged in Q1/2017 and is expected to decline Q2/2017.

The global yarn production fell in Q4/2016 quarter-on-quarter. Thereby, output in Asia, in North and in South America decreased. In Europe, it increased. On an annual basis, the global yarn production in Q4/2016 increased versus Q4/2015. Global yarn stocks climbed in Q4/2016 quarter-on-quarter. Yarn stocks were reduced in South America. In Asia, they fell. Year-on-year, global yarn stocks improved. Yarn orders in Europe fell and in South America they increased quarter-on-quarter. Compared to the same quarter a year ago, yarn orders increased in South America and fell in Europe.

Global fabric production increased in Q4/2016 against Q4/2016 due to increases in Asia and in Europe. In contrast, South America's fabric production decreased. Global fabric output improved year-on-year in Q4/2016. Thereby, Asian and South American output increased, while it fell in Europe. In Q4/2016, worldwide fabric stocks fell quarter-on-quarter. Fabric inventories were reduced in all examined regions except for Europe where they remained unchanged. Year-on-year, fabric stocks declined. European fabric orders increased quarter-on-quarter and they fell in South America. On a yearly basis South America's fabric orders declined and they remained unchanged in Europe.

For Q1/2017, estimates indicate an unchanged global yarn production and a rising fabric production. For Q2/2017, the global outlook for yarn production signals a decline and the outlook for global fabric output indicates an unchanged development.

In Q4/2016, global yarn production fell by nearly 24 per cent quarter-on-quarter mainly due to the exceptionally strong decline in Asia by 25 per cent. In North and South America yarn output fell by 6 per cent and 20 per cent, respectively. In Europe, in contrast, it rose by 19 per cent. Global yarn output increased by 6 per cent in Q4/2016 versus Q4/2015. In Asia yarn output improved by 6.4 per cent year- on-year and in South America by 20 per cent. In Europe and North America yarn output declined by 1.5 per cent year-on-year and by 0.4 per cent, respectively.

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