ITMF: State of the Trade Report, Q1 2011
August 10, 2011 In the 1st quarter of 2011, global yarn and fabric production fell compared to the previous quarter but rose in comparison to the 1st quarter of 2010. The decrease in global yarn production resulted from lower outputs in Asia, Europe and South America. It has to be noticed here that the reduction of yarn production in Asia in Q1 2010 is mainly a consequence of lower output in China.
Production in Q1 in China is traditionally lower compared to any other quarter as a result of fewer working days due to the Chinese New Year. It is therefore important to note that compared to Q1 2010, China’s yarn production increased in Q1 2011. Only North America recorded an absolute increase in yarn production in Q1 2011.
Global fabric production was down too, due to lower output levels in Asia and Europe which could not be offset by higher production in North and South America. Year-on-year global yarn and fabric production continued to grow globally. Only South America recorded lower yarn production in comparison to Q1 2010. Global yarn stocks increased in Q1 2011 compared to the previous quarter year due to higher stocks in South America and Asia.
Only in Europe were yarn stocks slightly lower. Year-on-year yarn stocks were up in all regions except Europe, where they fell slightly. Global fabric inventories were also up worldwide in Q1 2011, which was a consequence of higher fabric inventories in Asia, while those in South America, North America and Europe were down.
On an annual basis Asia, North America and Europe recorded higher fabric stocks, but dropped in South America. Yarn and fabric orders in Europe were higher in Q1 2011 compared to the previous one, while they were down in Brazil. Also, in comparison to last year’s Q1, yarn and fabric orders increased in Europe but dropped in Brazil.
World yarn production dropped 11.3 percent in the 1st quarter of 2011 in comparison to the previous quarter. In Asia, Europe and South America yarn output fell by -12.2, -2.6 and -0.1 percent, respectively and rose by 5.1 percent in North America. Year-on-year yarn production was higher in North America (10.2 percent), Asia (6.6 percent) and Europe (1.3 percent) but fell in South America (0.6 percent).
Like global yarn, worldwide fabric production dropped by 11.8 percent due to reduced output levels in Asia and Europe (14.3 percent and 2.0 percent, respectively), which could not be offset by increased production in North and South America (13.3 percent and 5.9 percent, respectively). In comparison to the 1st quarter of 2010, fabric production rose in all regions. With a jump of 15.7 percent South America recorded the strongest increase, followed by Europe (3.8 percent), Asia (3.7 percent) and North America (3.7 percent).
Yarn inventories increased worldwide by 2.0 percent in Q1 2011 compared to the previous quarter. In North America they rose by 11.1 percent and in Asia by 2 percent, but fell slightly in Europe by 0.3 percent. On an annual basis, global yarn stocks were 7.4 percent higher. Especially South America’s yarn stocks soared by 83.0 percent, while Asia’s rose by 5.3 percent and Europe’s remained almost unchanged (0.1 percent).
Yarn and fabric order in Europe were up by 0.3 and 2.8 percent, respectively in Q1 2011 compared to the previous quarter. Also, year-on-year yarn and fabric orders increased in Europe 1.1 percent and 2.0 percent, respectively. In Brazil, the situation was different. Yarn and fabric orders plummeted by 13.4 percent and 4.7 percent, respectively in Q1 2011. On an annual basis, yarn and fabric orders dropped in Brazil by 25.3 percent and 13.2 percent, respectively.
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