The International Textile Manufacturers Federation’s State of Trade report shows growth in global yarn and fabric production for the third quarter of 2016.
Yarn, in particular, continues to recover from the drastic dip in Q4 2015, while overall fabric production has been on an upswing all year. Based on the report findings, the ITMF expects an unchanged development for the fourth quarter and a decline for the first quarter of 2017.
Global yarn production increased by 3.4% during the third quarter compared to the second quarter. The gain was boosted by production in Asia, which ticked up 3.7%, and South America, which was up 2.6%. Europe and North America, on the other hand, experienced decreases of 13.3% and 1.4%, respectively. The sector also saw a 3.7% increase year on year, again led by Asia (up 3.5%) and South America (21 percent). Europe was down 4 percent and North America fell by 7.8%.
Global fabric production increased 3 percent for the third quarter compared to the previous year quarter. Asia and South America were up by 4 percent each, while European production fell nearly 15 percent. The third quarter showed a modest gain of 0.6% over the same period during 2015. Asian production increased by the same amount while South America’s output increased by 4.7%. Europe fell by 7 percent.
Yarn inventories increased by 4.8% compared to the previous quarter, led by a 5.7% increase in Asia, while South America dropped by 1.4%. Comparing year on year, global yarn inventories decreased by 6 percent. While European output increased 5 percent, Asia stocks fell by nearly 7 percent and South America dipped by 0.6%.
Worldwide fabric stocks fell by 1.4% compared to the previous quarter, dragged down by an 8 percent drop in South America. And inventories decreased by 5 percent for the year. Asia was down by 0.4%, South America by 16 and Europe by 2 percent. North American stocks increased by 0.8%.
In the third quarter, yarn orders fell by 5 percent in Europe, compared to the second quarter. South American orders fell by 11 percent for the quarter but rose 100 percent year on year.
European fabric orders dropped by nearly 10 percent quarter in the quarter and 11.5% comparing Q3 of 2016 to 2015. South American orders fell by 3 percent from the previous quarter and increased by 10 percent year on year.