Global yarn production decreased by 23 per cent between Q3/17 and Q4/17. Output reductions in Brazil (23 per cent), Asia (14 per cent), and the USA (4 per cent) have balanced out the increase in Africa (12 per cent) and Europe (15 per cent). All surveyed countries, apart from Brazil and Germany, expect a decrease in yarn output in Q1/2018. Global yarn stocks were stable between Q3/17 and Q4/17.
A reduction in Brazil (11 per cent), Egypt (9 per cent), and Europe (4 per cent) was cancelled out by a 3 per cent increase in Asia. Altogether, yarn stocks reached 96 per cent of their previous year level for the same quarter. Yarn orders increased on average between Q3/17 and Q4/17 (7 per cent). The order contraction in Korea Rep. (8 per cent) has been compensated by positive trends in the other reporting countries.
Global fabric production decreased from Q3/17 to Q4/17 by 2 per cent. A respective 12 per cent and 2 per cent contraction in Brazil and Asia drove the world average in the negative range. Fabric output, however, increased by 6 per cent and 10 per cent in Africa and Europe respectively. The world output level reached 95 per cent of its Q4/16 level. Europe and Brazil are expected to increase production in Q1/18. In Q4/17, the stock of global fabric level slightly grew (3 per cent).
This increase was driven by Brazil (15 per cent) and brought the index of fabrics stocks 3 per cent above the Q4/16 level. In 2017, stocks have been stable in Asia and the US. They increased steadily in Europe and Brazil and constantly decreased in Egypt. On an average, fabric orders have reduced by 23 per cent between Q3/17 and Q4/17 in the countries under review. The growth of 11 per cent and 2 per cent in Egypt and Europe was not sufficient to compensate for the reductions of 31 per cent in Brazil. The global index for fabric orders decreased by 3 per cent since Q4/16.
