Stable global yarn and fabric forecast by ITMF
According to ITMF, the International Textile Manufacturers Federation global yarn production was on the rise in the third quarter of 2012 (+7.5 %) thanks to a higher output in South America (+2.6 %), Asia (+ 8.5 %; thereof China + 9.3 %, India +7.6 % and Pakistan + 2.9 %), while production in Europe (-7.3 %) and North America (-10.0 %) was lower. Compared to the same quarter of 2011, yarn production rose, except in North America. Annual global yarn production rose by 12.8 %, the growth in South America and Asia was each 13.5 % and Europe 10.2 %, whilst North America shows a decrease of 17.0 %.
Yarn stocks were slightly higher in the third quarter, mainly due to higher stocks in Asia and South America, but on annual basis yarn inventories were 17.8 % lower because of lower stocks in Asia (-26.8 %) and South America (-7.1 %) and Europe (-0.9 %). In comparison to the same quarter of 2011 yarn inventories decreased by 3.8 %, in Asia -4.7 % and South America -3.4 %, whereas Europe’s stock remained unchanged.
Yarn orders were down in the third quarter of 2012, both in Europe (-2.9 %) and Brazil (-3.3 %), but on an annual basis yarn orders rose in Europe (+5.3 %) but decreased in Brazil (-3.6 %).
The fabrics situation
World fabric production increased in the third quarter of 2012 amid lower output in Europe because of increased production levels in Asia and South America. On an annual basis global fabric production was lower, however with an increase in Europe, whereas decreasing trends in Asia and South America.
Global fabric stocks were slightly higher (+0.5 %) as compared to one year earlier and reflected the higher inventories in Asia (+0.5 %) and South America (+2.4 %) but lower levels in Europe (-0.4 %) and North America (-2.0 %). On an annual basis fabric stocks were higher (+1.0 %) because of an uptrend in South America (+7.8 %) but lesser stocks in North America (10.7 %) and Asia (-6.7 %).
On the other hand, fabric orders decreased in the third quarter in Europe (-2.2 %) and Brazil (-7.2 %) as well as in comparison to the same quarter of 2011, and on an annual basis (Europe -6.9 % and Brazil – 3.7 %).
The look forward
The forecast for global yarn and fabric production in the fourth quarter and against the third quarter of 2012 are positive for Asia, stable for Europe and down for South America and the estimates for the global yarn and fabric production will remain stable in the first quarter of 2013. And with a regional focus, Asia is expecting stable production levels, while yarn production in Europe is decreasing and fabric production remains stable. For South America both yarn and fabric productions are positive.