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Yarn and fabric production decreased in Q4/17

Global yarn production decreased by -23% between Q3/17 and Q4/17. Output reductions in Brazil (-23%), Asia (-14%), and the U.S.A. (-4%) have balanced out the increase in Africa (+12%) and Europe (+15%). All surveyed countries, apart from Brazil and Germany, expect a decrease in yarn output in Q1/2018. Global yarn stocks were stable between Q3/17 and Q4/17. A reduction in Brazil (-11%), Egypt (-9%), and Europe (-4%) was cancelled out by a 3% increase in Asia. Altogether, yarn stocks reached 96% of their previous year level for the same quarter. Yarn orders increased on average between Q3/17 and Q4/17 (+7%). The order contraction in Korea Rep. (-8%) has been compensated by positive trends in the other reporting countries.

Global fabric production decreased from Q3/17 to Q4/17 by -2%. A respective -12% and -2% contraction in Brazil and Asia drove the world average in the negative range. Fabric output, however, increased by 6% and 10% in Africa and Europe respectively. The world output level reached 95% of its Q4/16 level. Europe and Brazil are expected to increase production in Q1/18. In Q4/17, the global fabric stock level slightly grew (+3%). This increase was driven by Brazil (+15%) and brought the index of fabrics stocks 3% above the Q4/16 level. In 2017, stocks have been stable in Asia and the U.S.A. They increased steadily in Europe and Brazil and constantly decreased in Egypt. On average, fabric orders have reduced by -23% between Q3/17 and Q4/17 in the countries under review. The growth of +11% and +2% in Egypt and Europe was not sufficient to compensate for the reductions of -31% in Brazil. The global index for fabric orders decrease by 3% since Q4/16.

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