Yarn production increased in Q2/18 and fabric production slightly shrunk states ITMF

Global yarn production increased by +5 % between Q1/18 andQ2/18. Higher output where observed in Egypt (+1.4 %), the U.S.A. (+3.2 %),South Africa (+3.3 %), and globally in Asia where the overall +5.7% increasewas led by Chinese Taipei and Korea, Rep. (respective growth rates of +8.1 %and +8.8 %). An opposite trend has been observed in all surveyed Europeancountries, Brazil and Japan. Forecasts for Q3/18 are only optimistic in Africa but the Q4/18 previsions turn positive in all regions except Brazil wherestability is expected. Global yarn stocks decreased globally by -4.75%. This isthe effect of small contractions in Asia and Europe (between -3 % and -4 %), an+18 % increase in Brazil, and a -20 % average decrease in the African countriessurveyed. Altogether, yarn stocks reached 85% of their previous year’s levelfor the same quarter. Global yarn orders decreased by -6 % led by a strongreduction in the Brazilian market (-28 %). Yarn orders however increased inAfrica and Europe by +5.7 % and +7.5 %, respectively.

 Global fabricproduction slightly decreased from Q1/18 to Q2/18. The +0.25 % contraction reflects a -6 % output reduction in Africa, a decrease of -0.5 % in Asia, a+1.6 % increase in Europe, and a +3.7 % jump in Brazil. The world output level now reaches 87% of its Q2/17 level. Fabric production in all regions is expected to decrease in Q3/18 except in Brazil where stability is foreseen.Q4/18 should see improvements in all regions. In Q2/18, the global fabric stocklevel grew by almost +2 %. It was driven by Brazil’s stock increase of +7 %, which brought global fabrics stocks 11% above their Q2/17 level. Stocks remainstable in Asia, Europe, and the U.S.A. They continue to steadily drop in Egypt.Global fabric orders have risen by +43 % at world level in Q2/18, led by a +65 % increase in Brazil that followed an unusually low first quarter. Orders in Asiaand Europe have stagnated and contracted in Egypt, respectively. Global fabricorders are now 16 % above their level observed in Q2/17.

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