Global Yarn & Fabric Production Shows Recovery

According to the International Textile Manufacturers Federation (ITMF), global yarn production increased by 17% from Q1/19 to Q2/19.

Higher output levels where observed in Asia (up 20%), Europe (up 3%) and the U.S. (up 1.4%).

The overall results of Asia were driven by a 27% increase in China’s yarn production. In the Asian region, only Korea recorded a production decrease (down 1.4%). Decreases were also observed in Brazil (down 2.2%) and Egypt (down 16%). Forecasts for Q2/19 are optimistic for Pakistan, Taiwan and South Africa.

Global yarn stocks decreased by 4.7% in Q1/19. This results from the stagnation of European and Egyptian stocks and the decrease in the Asian region (down 4.3%) and Brazil (down 22%). The decrease in Asia was led by decreases in India and Korea. Altogether, yarn stocks reached 98% of their Q2/18 level.

Global yarn orders decreased in all surveyed countries. A reduction of 15% from Q1/19 to Q2/19 was recorded at the world’s level. Yarn orders in Q2/19 were 82% of the same quarter of the previous year.

Global fabric production increased by 2.4% from Q1/19 to Q2/19. Production increased in China (up 6.7%), Japan (up 5.9%), Turkey (up 3.4%), South Africa (up 3.1%) and Brazil (up 1.3%). Sharp decreases were observed in Italy (down 26%), Egypt (down 19%) and Spain (down 10%). The world output level now reaches 89% of its Q2/18 level. Output levels are expected to further decrease in Q3/19 in Egypt, Germany, Italy and Spain, and improvements are foreseen in South Africa, Pakistan and Taiwan.

Global fabric stocks decreased between Q1/19 and Q2/19, driven by a 30% drop in Brazil. An increase in fabric stocks was only recorded in Taiwan (up 27%), while levels in the rest of the world were stagnating. Global fabrics stocks were 91% of their previous year’s level.

Global fabric orders increased by 8.7% in Q2/19, led by Brazil with a 14% improvement, and reached 82% of their Q2/18 level.

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