The International Textile Manufacturers Federation (ITMF) pointed to the increased optimism in market in its State of Trade Report, Q2-2014. Global yarn production increased in Q2/2014 compared to the previous quarter due to higher output in Asia, South and North America and despite a drop in Europe. Asia’s production is traditional significantly higher in the second quarter compared to the first one as a result of fewer working days in China in the first quarter due to the Chinese New Year holidays. In comparison to the first quarter, global yarn production increased in Q2 2014 by 15.9% while Asia’s output was up 17%. Also in comparison to last year’s quarter global yarn output was up by 11.1%.
Global Yarn Inventories
Looking at global yarn inventories, they were practically unchanged (just a 0.1% rise) in Q2 2014 amidst a balanced scene with Asia’s inventories going up and South America’s and Europe’s falling. On an annual basis, global yarn inventories jumped due to a surge in Asia and a slight increase in Europe, despite a drop in South America. In Q2 2014, yarn orders in Brazil were up by 7.5% but down in Europe by 4.1%. On an annual basis yarn orders increased in Brazil by 8.5% and fell in Europe by 3.1%.
Global Fabric Production
Global fabric production rose in Q2 2014 by 11.3% when compared to the previous quarter in which increases in all regions except Europe (recording a 0.5% fall) played a role. On an annual basis, Asian, European and South American markets posted large increases. World fabric stocks in Q2 2014 were 2.4% lower. In South America and Europe inventories were reduced by -9.8% and -6.1%, respectively, whereas fabric stocks slightly increased in Asia by 0.7% and in North America by 0.2%. In comparison to last year’s same quarter, global fabric stocks decreased by 3.1% with reductions in South America (by 13.7%) and Europe (by 4.1%) which were not offset by a 1.1% increase in Asia and 0.7% in North America. Fabric orders in Q2 2014 rose in Brazil in comparison to the previous quarter by 7.5% but were down in comparison to last year by 2.9%. In Europe, fabric orders were lower in Q2 2014 compared to Q1 2014 by 3.7% but higher on an annual basis by 2.2%.
Estimates for Yarn Production
Estimates for yarn production for Q3, 2014 are positive in Asia, North and South America but negative in Europe. Estimates for fabric production for Q3 2014 are positive in Asia and South America but negative in Europe. The outlook for yarn production for Q4/2014 is positive in Asia and stable in Europe. The outlook for fabric production for Q4 2014 is positive in Asia and stable in Europe.
