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Leather Pipeline: it’s the end of over-capacity in the tanning industry

The latest edition of our exclusive fortnightly market intelligence report, Leather Pipeline, acknowledges that there are industry commentators who disagree, but it insists there has been a notable decline in demand for finished leather.

In the June 13 edition, the report makes it clear the manufacturers of handbags and furniture, as well as shoes, are ordering less leather than they have in the past, and it warns that even in the automotive sector, so long the most positive market for leathers, demand is slowing down.

According to the report, the proof of this contention is that the industry as a whole has been able to cope without difficulty with the closure or moth-balling of “quite a number of tanneries” in the last 12 or 18 months. It says most of these closures have come in China but that facilities in India, Pakistan and Bangladesh have also closed their doors, for environmental and for financial reasons.

It concludes that “a great part of the overcapacity” in leather production across the world, which has built up over many years, “has either already vanished or will vanish pretty soon”.

Subscribers can read the full report at this link.

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