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ITMF Releases Q3 Report on Global Yarn and Fabric Production

21 Nov '11

4 min read

The International Textile Manufacturers Federation (ITMF) has released its third quarter trade report on global yarn and fabric production. According to the association, the strong global recovery in yarn and fabric production continued into the third quarter of 2010, after hitting their low point in the first quarter of 2009. Both global yarn and fabric production rose compared to the second quarter of 2010 as well as to last year's third quarter. Output increases of yarns could be observed in Asia and North America while Europe and South America recorded reductions. Fabric production grew in Asia and South America but shrank in Europe and North America.

Global yarn stocks rose in the third quarter of 2010 as compared to the previous quarter, even though Asia's yarn inventories fell slightly. Compared to the third quarter of 2009, yarn stocks worldwide increased as a result of much higher stocks in South America and despite lower stocks in Asia and Europe. Global fabric inventories came down in the third quarter as compared to the previous one mainly due to lower stocks in Asia and Europe and despite higher stocks in North and South America.

Yarn orders fell both in Europe and Brazil compared to the second quarter of 2010. When comparing to the third quarter of 2009 Europe's yarn orders were higher while those in Brazil dropped significantly. Fabric orders in Brazil grew compared to the previous quarter, while Europe's were slightly lower. In comparison to previous year's third quarter Brazil and Europe recorded higher yarn orders.

World yarn production rose 1.9 percent in the third quarter of 2010, in comparison to the previous three months. This growth was the result of increases in North America and Asia (4.5 percent and2.4 percent, respectively) while yarn production dropped in Europe (-10.5 percent) and to a much smaller extent in South America (-1.2 percent). In comparison to last year's quarter, all regions recorded higher output levels. With a jump of 14.7 percent, South America's yarn production surged impressively, followed by Asia (12 percent), North America (11.9 percent) and Europe (0.9 percent).

Also, worldwide fabric production continued to increase by posting a 1.9 percent jump in the third quarter of 2010. Lower output levels in Europe (-7.2 percent) and North America (-6.5 percent) were offset by increases in South America (6.2 percent) and Asia (2.4 percent). Year-on-year global fabric production increased 11.2 percent. All regions recorded higher output levels. Fabric production was up in Europe (13.1 percent), Asia (11.9 percent) and South America (3 percent).

World yarn inventories rose in the third quarter of 2010 by 3.5 percent. In South America they soared 60.5 percent and remained almost unchanged in Europe (0.1 percent) but fell slightly in Asia (-0.8 percent). On an annual basis, world yarn stocks were up by 5 percent due to soaring inventories in South America (114.8 percent) while they fell slightly in Asia and Europe (-1.2 percent and -0.4 percent, respectively).

Fabric stocks were down by -2.5 percent globally in the third quarter of 2010 with Asia and Europe recording decreases of -4.9 percent and -0.6 percent, respectively. In North and South America, fabric stocks rose by 4.5 percent and 1.2 percent, respectively. In comparison to previous year's third quarter, global fabric inventories increased by 8.4 percent due to increased stocks in all regions. Especially South America recorded a surge (42.3 percent) while fabric stocks in Asia, North America and Europe were up by 3.1 percent, 2.0 percent and 1.0 percent, respectively.

In the third quarter of 2010 yarn orders in Brazil and Europe fell by -7.6 percent and -0.8 percent, respectively. Year-on-year Europe's yarn orders were still up 2.6 percent while Brazil's dropped by -24.8 percent. Fabric orders in Europe remained almost unchanged (-0.3 percent) in the third quarter but rose in Brazil by 4.5 percent. On an annual basis, fabric orders in Europe were up by 7.3 percent and with 0.2 percent unchanged in Brazil.

International Textile Manufacturers Federation (ITMF)