According to the International Textile Manufacturers federation (ITMF) State of the Trade Report for Q3, the estimated performance in Q3 and the outlook for Q4 are both positive in Asia, but the outlook in Europe is still gloomy:
Yarn Production and Stocks
In Q2 2013, global yarn production increased compared to the previous quarter as a result of higher output in Asia, North and South America (production remained practically unchanged in Europe). Year-on-year global yarn production was up as well, with Asia and South America recording higher totals and Europe and North America sliding a bit.
Worldwide yarn stocks also were slightly higher in Q2 than they were in Q1 due to higher inventories in Europe and Asia, which more than offset decreasing stocks in South America. On an annual basis, global yarn stocks were up in all regions. Yarn orders in Europe and Brazil fell in Q2, compared to both the previous quarter and Q2 2012.
Fabric Output and Stocks
Global fabric output was up in Q2 vs. Q1 2013 due to higher production in Europe, South America and Asia. Year-on-year production rose in Asia and Europe but dropped in South America. Fabric stocks were down globally as a result of lower inventories in South America; stocks remained practically unchanged in all other regions. Compared to Q2 2012, worldwide fabric stocks were up in Asia, but not enough to offset the decreases in South America, North America and Europe. Fabric orders in Brazil soared in Q2 2013 but decreased in Europe. On an annual basis, fabric stocks were up in Brazil but down in Europe.
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