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Global Yarn and Fabric Output Increased in Second Quarter, Led by Brazil and Asia

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Global yarn production and fabric output increased in the second quarter and is expected to stay stable in the third, increasing in the last three months of the year, according to the International Textile Manufacturers Federation quarterly report.

Global yarn production rose 11 percent in the second quarter compared to the previous three months, led by a 12 percent gain in Asia and an 11 percent increase in Brazil. Yarn production decreased 10 percent in the U.S. and 18 percent in Africa in the same period. Overall, global yarn production was slightly higher than year-ago levels, ITMF said.

Global fabric production improved nearly 9 percent in the quarter, with a 10.4% increase in Brazil, a 9.8% gain in Asia and a 9.2% hike in Africa. Overall, global fabric output rose 4 percent compared to the second quarter of 2016.

Global yarn stocks fell 1 percent in the quarter, as Asia, Europe and Brazil saw their yarn inventories increase 0.7%, 2.3%, and 11.5%, respectively, but the world average was driven down by a 12 percent decrease of yarn stocks in Egypt. The stocks’ improvement of 13 percent in comparison to the year-ago period included declines of 40 percent in Brazil and 3 percent in Europe, balanced by increases of 10 percent in Asia and 112 percent in Egypt.

[Read more about yarn production: Indian Spinners Advised to Reduce Yarn Production for Market Stability]

Worldwide fabric stocks rose 3.3% in the period, driven by a 23 percent increase in Brazil. Global fabric inventories in the quarter decreased 8 percent compared to a year earlier, with Brazil falling 30 percent, Europe rising 7 percent and Asia and the U.S. fairly stable.

European yarn orders fell 7 in the period from the first quarter, with reductions of 6 percent and 4 percent recorded in Brazil and Asia, respectively.

A 9 percent increase in global fabric orders quarter to quarter was driven by a 13 percent gain in Brazil and 16 percent rise in Egypt. During the quarter, fabric orders were stable in Asia and down slightly in Europe.

ITMF said estimates for the third quarter “indicate a stable trend in both global yarn and fabric production,” while for the fourth quarter “the global outlook for both yarn production and fabric output signal further rise.”

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