Global yarn and fabric output up in second quarter

ITMF confirms positive outlook for both

Global yarn production increased in the second quarter of the current year compared to the previous quarter thanks to higher output in Asia, South and North America and despite a drop in Europe. Also on an annual basis, yarn production increased though only as a result of higher output in Asia, with South America, North America and Europe recording reductions.

It has to be pointed out that Asia’s production was significantly higher in the second quarter compared to the first as a result of fewer working days in China. Worldwide yarn stocks remained practically unchanged in the second quarter in comparison to the first quarter, with stocks falling in South America and Europe which were offset by higher inventories in Asia.

Year-on-year global yarn stocks jumped due to higher inventories in Europe, and especially in Asia, and in spite of plummeting inventories in South America. Yarn orders were up in Brazil, but down in Europe both in comparison to the previous quarter and year on year.

Global fabric production rose in Q2/2014 with all regions except Europe contributing to this growth. On an annual basis, world fabric production was up as well with Asia, Europe and South America recording higher output. World fabric stocks in the second quarter were lower due to decreases in inventories in South America and Europe, while inventories in Asia and North America increased slightly. Also on an annual basis, global fabric inventories fell due to reductions in South America and Europe and despite higher inventories in Asia and North America. Fabric orders in Europe recorded a fall during the quarter, while they rose in Brazil. Year-on-year fabric orders were higher in Europe but lower in Brazil.

Estimates for yarn production for Q3/2014 are positive in Asia, North and South America but negative in Europe. Estimates for fabric production for the quarter are positive in Asia and South America but negative in Europe.

The outlook for yarn production for Q4/2014 is positive in Asia and stable in Europe and that for fabric production for the quarter is positive in Asia and stable in Europe.

In comparison to the first quarter, global yarn production increased in Q2/2014 by 15.9 per cent due to higher output in Asia of 17 per cent, South America by 5.9 per cent and North America by 3.5 per cent, and irrespective of 3.2 per cent lower production in Europe. Also in comparison to last year’s quarter, global yarn output was up by 11.1 per cent. This increase was the result of a surge in yarn production in Asia by 12.5 per cent, while the output declined in South America by 14.5 per cent, North America by 1.1 per cent and Europe by 0.3 per cent.

Compared with the previous quarter world fabric production rose in Q2/2014 by 11.3 per cent. Asia and South America recorded higher output levels of 13.2 per cent and 2.9 per cent respectively, while production in Europe declined by 0.5 per cent. Year-on-year world fabric production rose as well by 5.5 per cent, with all regions contributing to this growth, especially Asia (6.2 per cent), followed by Europe (3.7 per cent) and South America (0.9 per cent).

Global yarn inventories were practically unchanged in Q2/2014, with Asia’s inventories going up by 1.2 per cent and South America’s and Europe’s falling by 9.8 per cent and 1.2 per cent respectively. On an annual basis, global yarn inventories jumped by 9.5 per cent due to a surge in Asia of 13.5 per cent and a slight increase in Europe of 1.2 per cent, and despite a drop in South America of 20.3 per cent.

Global fabric stocks in Q2/2014 fell by 2.4 per cent. In South America and Europe, inventories were reduced by 9.8 per cent and 6.1 per cent respectively, whereas fabric stocks increased in Asia by 0.7 per cent and in North America by 0.2 per cent. In comparison to last year’s quarter, world fabric stocks decreased by 3.1 per cent with reductions in South America of 13.7 per cent and Europe of 4.1 per cent, which were not offset by increases in Asia of 1.1 per cent and North America 0.7 per cent.

In Q2/2014 yarn orders in Brazil were up by 7.5 per cent and down in Europe by 4.1 per cent. On an annual basis, yarn orders increased in Brazil by 8.5 per cent and fell in Europe by 3.1 per cent.

Fabric orders in the quarter rose in Brazil in comparison to the previous quarter by 7.5 per cent but were down in comparison to last year by 2.9 per cent. In Europe fabric orders were lower in the quarter as compared to the first quarter by 3.7 per cent but higher on an annual basis by 2.2 per cent.