A recent report by International Textile Manufacturers Federation (ITMF) says global yarn production decreased in the third quarter of 2014 compared to the previous quarter due to lower output in Asia and Europe. Also global fabric production declined in Q3/2014 compared to the previous quarter with all regions showing declines. However, on an annual basis world fabric production improved.
Estimates for yarn production for the fourth quarter are positive in Asia and Europe, while in North and South America they are negative. Estimates for fabric production are positive in Asia and Europe; however, in South America they are negative. The outlook for yarn production for the first quarter of 2015 is positive in Europe and unchanged in Asia. The same pattern applies to the outlook for fabric production. It is positive in Europe and unchanged in Asia.
Global yarn and fabric scenario in Q3-2014 During the same period, the yarn production in
North America increased moderately, while in South America it recorded a strong rise. On an annual basis, the global yarn production rose and was supported by a strong increase in Asia. In Europe, North and South America, in contrast, yarn output fell year-on-year. Worldwide yarn stocks rose in comparison to the second quarter. Thereby, yarn stocks in Asia and South America were increased, while they were reduced in Europe. Year-on-year, global yarn stocks increased due to higher inventories in Asia, while stocks in Europe and South America were reduced. Yarn orders in Brazil showed a strong quarter-on-quarter growth and a moderate rise in Europe. Also, year-on-year Brazilian orders rose, while Europe saw a modest decline.
Fabric output in Asia and Europe increased, while it fell in South America. World fabric stocks increased quarter-on-quarter with all regions supporting this development. Year-on-year, the picture was mixed with increases in Asia and North America and decreases in Europe and South America. Overall, global fabric inventories fell annually. Fabric orders fell in Europe and rose in Brazil quarter-on-quarter as well as year-on-year. Percentagewise world-view of yarns and fabrics
In the third quarter, global yarn production fell by 1.3 percent quarter-on-quarter, thereby, output in Asia and Europe decreased by 1.4 percent and 5.7 percent respectively. In North and South America yarn output climbed by 1.1 percent and 5.7 percent compared to the second quarter of 2014. In comparison to the third quarter of 2013 worldwide yarn production witnessed a rise of 6.3 percent. This was supported by an increase of 7.3 percent in output in Asia, whereas the other regions saw declines of 3.1 percent annually in Europe, 2.4 percent in North America and 12.3 percent in South America.
Global yarn inventories rose by 0.9 percent quarter-on-quarter. Thereby, Asian inventories remained nearly unchanged, while they decreased by 3.6 percent in Europe. Yarn stocks in South America increased by 7.8 percent. On an annual basis, global yarn inventories rose by 3.7 percent due to a strong 5.5 percent increase in Asia. In Europe and South America yarn stocks were reduced by 2.1 percent and 11.2 percent respectively.
Global fabric production fell by 1.3 percent compared to the previous quarter. The strongest decline was recorded in South America with 8.3 percent followed by Europe with 7.6 percent. In Asia fabric output fell moderately by 0.4 percent. In contrast, global fabric output increased by 1.3 percent year-on-year supported by 2 per cent rises in Asia and 2.9 percent in Europe. In South America, however, fabric production fell by 11.4 percent annually.
Worldwide fabric stocks increased by 1.4 percent compared to the previous quarter with all regions contributing positively. Stocks in Europe rose the strongest by 4.8 percent, followed by gains of 4 percent in South America, 0.4 percent in North America and 0.2 percent in Asia. In contrast, global fabric inventories were reduced by 1.9 percent year-on-year. While fabric stocks were raised by 0.8 percent in Asia and 1.8 percent in North America, they fell by 0.7 percent and 9.8 percent in Europe and in South America respectively.
Yarn orders in Brazil were up by 5.7 percent quarter-on-quarter and by 0.5 percent Europe. On an annual basis yarn orders increased in Brazil by 12.5 percent and fell in Europe by 0.3 percent. Fabric orders rose by 5.7 percent in Brazil compared to the previous quarter, while they fell by 3.4 percent in Europe. Year-on-year, Brazilian fabric orders climbed by 12 percent whereas in Europe they declined by 3.6 percent.
