Global yarn production increased by 5% between Q1/18 and Q2/18. A higher output was observed in Egypt (1.4%), the US (3.2%), South Africa (3.3%) and globally in Asia where the overall 5.7% increase was led by Chinese Taipei and Korea, with respective growth rates of 8.1% and 8.8%. An opposite trend has been observed in all surveyed European countries.
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%. This is the effect of small contractions in Asia and Europe (between 3% and 4%), an 18% increase in Brazil, and a 20% average decrease in the African countries surveyed. Altogether, yarn stocks reached 85% of the previous year’s level for the same quarter. Global yarn orders decreased by 6%, led by a strong reduction in the Brazilian market of 28%. Yarn orders, however, increased in Africa and Europe by 5.7% and 7.5%, respectively.
Global fabric production slightly decreased from Q1/18 to Q2/18. The 0.25% contraction reflects a 6% output reduction in Africa, a decrease of 0.5% in Asia, a 1.6% increase in Europe and a 3.7% jump in Brazil. The world output level now reaches 87% of its Q2/17 level.
Fabric production in all regions is expected to decrease in Q3/18, except in Brazil where stability is foreseen. Q4/18 should see improvements in all regions.
In Q2/18, the global fabric stock level grew by almost 2%. It was driven by Brazil’s stock increase of 7%, which brought global fabrics stocks 11% above their Q2/17 level.
Stocks remain stable in Asia, Europe, and the US. They continue to steadily drop in Egypt.
Global fabric orders have risen by +43% at the world level in Q2/18, led by a 65% increase in Brazil that followed an unusually low first quarter. Orders in Asia and Europe have stagnated and contracted in Egypt, respectively. Global fabric orders are now 16% above their level observed in Q2/17.