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Report | August 2018

Yarn and fabric production decreased in Q4/17

Global yarn stocks were stable between Q3/17 and Q4/17. A reduction in Brazil (-11 per cent), Egypt (-9 per cent), and Europe (-4 per cent) was cancelled out by a 3 per cent increase in Asia.

Global yarn production decreasedby -23 per cent between Q3/17 and Q4/17. Output reductions in Brazil (-23 per cent), Asia (-14 per cent), and the US (-4 per cent) have balanced out the increase in Africa (+12 per cent) and Europe (+15 per cent). All surveyed countries, apart from Brazil and Germany, expect a decrease in yarn output in Q1/2018. Global yarn stocks were stable between Q3/17 and Q4/17. A reduction in Brazil (-11 per cent), Egypt (-9 per cent), and Europe (-4 per cent) was cancelled out by a 3 per cent increase in Asia. Altogether, yarn stocks reached 96 per cent of their previous year level for the same quarter. Yarn orders increased on average between Q3/17 and Q4/17 (+7 per cent). The order contraction in Korea Republic (-8 per cent) has been compensated by positive trends in the other reporting countries.

Global fabric production decreased from Q3/17 to Q4/17 by -2 per cent. A respective -12 per cent and -2 per cent contraction in Brazil and Asia drove the world average in the negative range. Fabric output, however, increased by 6 per cent and 10 per cent in Africa and Europe respectively. The world output level reached 95 per cent of its Q4/16 level. Europe and Brazil are expected to increase production in Q1/18. In Q4/17, the global fabric stock level slightly grew (+3 per cent). This increase was driven by Brazil (+15 per cent) and brought the index of fabrics stocks 3 per cent above the Q4/16 level. In 2017, stocks have been stable in Asia and the U.S.A. They increased steadily in Europe and Brazil and constantly decreased in Egypt. On average, fabric orders have reduced by -23 per cent between Q3/17 and Q4/17 in the countries under review. The growth of +11 per cent and +2 per cent in Egypt and Europe was not sufficient to compensate for the reductions of -31 per cent in Brazil. The global index for fabric orders decrease by 3 per cent since Q4/16.

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