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Talking Point | January 2019

Yarn production increased in Q2/18

Global yarn production increased by +5per cent between Q1/18 and Q2/18. Higher output where observed in Egypt (+1.4per cent), the U.S.A. (+3.2 per cent), South Africa (+3.3 per cent), and globally in Asia where the overall +5.7per cent increase was led by Chinese Taipei and Korea, Rep. (respective growth rates of +8.1per cent and +8.8). An opposite trend has been observed in all surveyed European countries, Brazil and Japan. Forecasts for Q3/18 are only optimistic in Africa but the Q4/18 previsions turn positive in all regions except Brazil where stability is expected. Global yarn stocks decreased globally by -4.75 per cent. This is the effect of small contractions in Asia and Europe (between -3per cent and -4 per cent), an +18per cent increase in Brazil, and a -20 per cent average decrease in the African countries surveyed. Altogether, yarn stocks reached 85 per cent of their previous year’s level for the same quarter. Global yarn orders decreased by -6 per cent led by a strong reduction in the Brazilian market (-28 per cent). Yarn orders however increased in Africa and Europe by +5.7 per cent and +7.5 per cent, respectively.

Global fabric production slightly decreased from Q1/18 to Q2/18. The +0.25per cent contraction reflects a -6per cent output reduction in Africa, a decrease of -0.5per cent in Asia, a +1.6per cent increase in Europe, and a +3.7per cent jump in Brazil. The world output level now reaches 87per cent of its Q2/17 level. Fabric production in all regions is expected to decrease in Q3/18 except in Brazil where stability is foreseen.

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