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Newsline-International | August 2016

Global yarn output up, fabric down in Q1/2016

The global yarn production increased in Q1/2016 quarter-on-quarter. Thereby, output in Asia and South America rose on a quarterly basis, while it decreased in Europe. On an annual basis, the global yarn production in Q1/2016 improved versus Q1/2015 with positive growth rates in Asia and Europe. Global yarn stocks fell in Q1/2016 quarter-on-quarter. Yarn stocks were reduced in Asia and South America, while they remained unchanged in the other regions. Year-on-year, global yarn stocks increased. Yarn orders in Europe and South America improved quarter-on-quarter and year-on-year.

Global fabric production fell in Q1/2016 against Q4/2015 due to decreases in Asia and Europe. In South America, in contrast, fabric production increased. Compared to the level of Q1/2015 global fabric output remained unchanged. Thereby, Asian output remained stable, South American output fell and fabric production in Europe rose year-on-year. In Q1/2016, worldwide fabric stocks increased moderately quarter-on-quarter. Fabric inventories were reduced in Asia, while they increased in South America. Fabric stocks in Q1/2016 remained unchanged year-on-year. European fabric orders decreased quarter-on-quarter and in South America they increased. On a yearly basis fabric orders declined in Europe and in South America.

The global outlook for yarn and fabric production signals a further improvement for Q3/2016. In Q1/2016, global yarn production increased by 20 per cent quarter-on-quarter. Thereby, Asian yarn output strengthened by 21 per cent quarter-on-quarter and by 29 per cent in South America. In Europe it fell by 4 per cent. Global yarn output grew by 4 per cent in Q1/2016 versus Q1/2015. The annual percentage change of yarn output in Asia and Europe amounted to 5 per cent and 4 per cent, respectively.

In North and South America yearly growth rates were in negative territory with over 7 per cent and 6 per cent each.

Global fabric production declined by over 8 per cent in Q1/2016 against the previous quarter. While Asian and European output fell by over 10 per cent and 2 per cent, respectively, South American fabric production improved by 31 per cent quarter-on-quarter. Year-on-year, global fabric output remained unchanged in Q1/2016. Thereby, Asian production remained broadly unchanged year-on-year, while South America’s output fell by nearly 21 per cent. Europe’s fabric output rose by around 9 per cent year-on-year.

Global yarn inventories decreased in Q1/2016 by 5 per cent quarter-on-quarter with reductions of 6 per cent in Asia and 1 per cent in South America. In Q1/2016, the annual percentage change of global yarn inventories recorded an increase of nearly 3 per cent. Thereby, European yarn stocks increased by nearly 7 per cent year-on-year and in South America stocks rose by 35 per cent. Asian yarn stocks remained unchanged on an annual basis in Q1/2016. Worldwide fabric stocks remained nearly unchanged quarter-on-quarter in Q1/2016. Thereby stocks in Asia were reduced by less than 1 per cent, while in South America they were increased by over 2 per cent. On a yearly basis, global fabric inventories in Q1/2016 remained nearly unchanged. Europe’s fabric stocks decreased in Q1/2016 by 3.5 per cent annually and by nearly 2 per cent in North America. In the other regions stocks were roughly stable on a year-on-year basis.

In Q1/2016, European yarn orders rose moderately by 0.5 per cent quarter-on-quarter and by 3 per cent year-on-year. In South America they increased significantly by over 100 per cent quarter-on-quarter and rose by 22 per cent year-on-year. European fabric orders in Q1/2016 fell by 2 per cent quarter-on-quarter and by 4 per cent year-on-year. South American fabric orders in Q1/2016 increased by nearly 5 per cent quarter-on-quarter and fell by 23 per cent year-on-year.

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