Estimates for the third quarter of 2013 and outlook for the fourth quarter of this year for global yarn and fabric output are positive in Asia and negative in Europe, according to ITMF, the International Textile Manufacturers Federation.

ITMF is an international Association for the world’s textile industries, dedicated to keeping its world-wide membership constantly informed through surveys, studies and publications and through the organisation of annual conferences.

Yarn production

In comparison to the previous quarter world yarn output rose in the second quarter of 2013 by 7.7% due to higher output in Asia, particularly in China, where it increased by 9.9%, as well as in North America and South America and despite a slight reduction in Europe.

Year-on-year global yarn production rose by 7% as a result of higher production levels in Asia and South America, 7.6% and 4.6% increase, respectively, and despite the lower output levels in North America and Europe.

Fabric production

Compared with the previous quarter global fabric production rose in the second quarter of 2013 by 4.8% with all regions recording growth, especially in Asia, where it rose by 5.4%.

Year-on-year global fabric production was up as well with Asia recording a production jump of 9.6% and Europe of 4.2%, while South America recorded a slump of 20.8%.

Estimates and outlook

Estimates for yarn production for the third 2013 are positive in Asia, neutral in North and South America and negative in Europe. Estimates for fabric production for the third quarter are positive in Asia, neutral in North and South America and negative in Europe.

The outlook for yarn and fabric production for the fourth quarter of 2013 is positive in Asia and neutral in Europe and South America.

Stocks

Global yarn inventories were slightly higher in the second quarter of 2013 due to higher stocks in Europe, where it increased by 4.4%, and Asia, with a 1.2% growth. Stocks in South America were down by 1.9%. On an annual basis global yarn inventories rose by 3.5% with all regions reporting higher stocks.

Global fabric stocks in the second quarter of 2013 fell by 2.2% resulting from lower inventories in South America, with a 7.8% decrease and despite higher stocks in North America. Global fabric stocks were down year-on-year by 4.6%, as a result of lower stocks in North America, Europe and particularly South America, where the decrease amounted to 20.0%. Fabric stocks in Asia on the other hand rose by 1.1%.

Orders

Fabric orders in Brazil soared by 25.6% in the second quarter of 2013 but decreased in Europe by 1.7%. On an annual basis fabric stocks in Brazil were up by 1.2% but down in Europe by 0.3%.

Yarn orders in Europe and Brazil fell in the second quarter by 5.5% and 1.5%, respectively. Also compared to last year’s quarter yarn orders fell both in Europe by 3.7% and Brazil by 15.8%.

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