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Web Exclusive | October 2019

Global yarn output up 17%

Global yarn production increased by +17 per cent between Q4/18 and Q1/19. Higher output levels where observed in Asia (+18 per cent), Brazil (+18 per cent), the USA (+3.2 per cent) and Europe (+1.6 per cent). The overall Asian result is due to a +27 per cent increase in Chinese yarn production which outperformed the contraction registered in Japan (-1.7 per cent), India (-3.1 per cent) and Korea, Rep. (-9.2 per cent). A decreasing trend has further been observed in South Africa (-5.3 per cent) and Egypt (-7.9 per cent). Forecasts for Q2/19 are optimistic in Japan, Chinese Taipei, and Turkey. Global yarn stocks increased by +6.3 per cent worldwide. This results from a +27 per cent improvement in Egypt, +7.7 per cent raise in Brazil, and +3.8 per cent increase in Asia. The latter is the consequence of stock growth in Japan and India, stability in Pakistan and decrease in Korea, Rep. and Chinese Taipei. Altogether, yarn stocks reached 97 per cent of their previous year’s level for the same quarter. Global yarn orders increased by +12, led by Brazil (+18 per cent), Egypt (+11 per cent), and Asia (+9 per cent).

Global fabric production increased between Q4/18 to Q1/19 by +3.8 per cent. This reflects an output raise of +19 per cent in Brazil and an overall +3.6 per cent improvement in Asian countries. Europe saw its production shrink by -0.85 per cent with the biggest drop registered in Spain (-10.1 per cent). A strong decrease of -42 per cent was also witnessed in Egyptian fabric production. The world output level now reaches 88 per cent of its Q1/18 level. Output levels are expected to further decrease in Q2/19 in Asia, Africa, and Brazil, stay constant in the U.S.A. and increase in Europe. Production should stagnate in Q3/19 in all regions but Asia, which should register an improvement. The global fabric stock level has stagnated between Q4/18 and Q1/19. This resulted from raises registered in Egypt (+16 per cent) and Brazil (+3.3 per cent) and decreases of -1 per cent to -2 per cent observed in Asia, Europe and the U.S.A. In Q1/19, global fabrics stocks were 1 per cent above their Q1/18 level. Global fabric orders have dropped by -19 per cent in Q1/19, led by a decrease of -32 per cent in Egypt and -25 per cent in Brazil. Global fabric orders were 8 per cent above their Q1/18 level.
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