The International Textile Manufacturer’s Federation (ITMF) has revealed global yarn production and global fabric production both decreased between Q4/17 and Q1/18.
The figure were revealed as part of the ITMF’s State of Trade Report for the first quarter of 2018. In the report, it is stated that the global yarn market took a hit while the global fabric market also suffered.
Global yarn segment
According to the ITMF, global yarn production fell by -9% between Q4/17 and Q1/18. Output reductions in Africa of -13% and Europe (-1.5%) cancelled out the increase of 12% recorded in Brazil and the 3% rise in the US.
Despite the overall drop in production, the majority of countries that responded to the ITMF’s survey are optimistic about the evolution in Q2/18, but Europe and Brazil expected production to fall again.
Global yarn stocks also suffered, with decreases being reported in all regions in Q1/18 except Brazil, which saw an increase of 1.5%. Elsewhere, reductions were reported in Asia (-6%), Europe (-3%), and Egypt, where stocks fell by -1.5%. In total, global yarn stocks reached 89% of their previous year level for the same quarter.
Global yarn orders, meanwhile, decreased in all countries except Japan which recorded an increase of 2%. Yarn orders decreased by an average of -5% in all other countries.
Global production
Global production levels of fabric also decreased from Q4/17 to Q1/18, falling by 10% at world level. In Asia, fabric production dropped by -12%, in Africa it fell by -5%, while in Europe production was down -2%. In Brazil, meanwhile, production increased by 1%.
The world output level now reaches 96% of its Q1/17 level. South Africa, Pakistan and Turkey are forecasting a further increase in fabric production in Q2/18, while all other countries are expecting stability or a decrease.
Global fabrics stocks, however, grew by 1% in Q1/18. According to the ITMF, this rise was the result of Brazil’s stock improvement of 5%, which was sufficient to take fabric stocks 13% over their Q1/17 level.
Fabric stocks remain stable in Asia, Europe and the US, yet they continue to steadily decline in Egypt and South Africa, and they constantly increase in Brazil.
Global fabric orders fell between Q4/17 and Q1/18 by a total of 6%. Europe’s slight improvement of 2% was balanced out by reductions in Brazil and Africa of -10% and -18%, respectively. This brought the global index to 88% of its previous year level.