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Global yarn production increases while fabric production dips between Q1-Q2

Global yarn production increased 5 per cent between the first and second quarters of 2018. Higher output were observed in Egypt (+1.4 per cent), the USA (+3.2 per cent), South Africa (+3.3 per cent), globally in Asia where the overall +5.7 per cent increase was led by Chinese Taipei and Korea, Rep. An opposite trend was observed in all surveyed European countries, Brazil and Japan. Forecasts for Q3/18 are only optimistic in Africa but the Q4/18 previsions turn positive in all regions except Brazil where stability is expected.

Global fabric production, however, decreased by 0.25 per cent from Q1/18 to Q2/18. This contraction reflects a -6 per cent output reduction in Africa, a decrease of -0.5 per cent in Asia, a +1.6 per cent increase in Europe, and a +3.7 per cent increase in Brazil. World output level has now reached 87 per cent of its Q2/17 level. Fabric production in all regions is expected to decrease in Q3/18 except in Brazil where stability is foreseen.