German Perspective - 24.01.17 - leatherbiz: Lea Leatherbiz

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German Perspective - 24.01.17

24/01/2017
What happened this week:  We are now heading towards the end of January and that means the Chines New Year break is round the corner while in the rest of the world the normal rhythm of work and business after the Christmas and New Year break has reached. This kind of timing also having strong influence on the hide and skin business. One could easily see in the course of the week that the Chinese are far more busy to wrap up their this and to clean their desks rather than to bother about the raw material market and purchases. It seems that at least in this season the general raw material business is become by far more planned and scheduled than ever before. Tanneries seem to buy pretty much according to their order books and requirements and speculation and gamble is far less a factor of business these days. The main activity in China which is having a deeper influence on the European hide market remains upholstery leather tannage with the Chinese industry is having a major impact on the dairy cow in other suitable raw material markets. For males the influences pretty much reduced which is on one side the consequence of a slower business and shoe upper leather and on the other side a result of the strong influence European automotive tannage has on the adequate height.At the end one has to say this is for the good, because it has made general price trends much less volatile and the price ranges more narrow for some time now. It seems that this is also recognised in the meantime by the players in Europe and the temptation to trigger big price variations have become much less over the past year. Consequently are the changes in the weekly activity and the number of hides traded in the short term not anymore having the deep impact they used to have in the past. Maybe it is also a direct result of the political uncertainties we are seeing around that most are quite happy to see more stability rather than to see their advantage in rapid price fluctuations. Business this week at the end rather quiet. They are always the bits and pieces which need to be done on both sides, but by mid week Chinese were busy with administration. Everything still needs to be organised, because also the banks be closing down latest by mid next week and this means all kind of financial transactions will be then interrupted for at least 10 days. Most other offices are actually closing down as well or run just on emergency staff. Means that shipping and financial departments been very busy this week to get everything straightened out and very good news is that most customers were trying hard and pushing to have everything sorted out before the close to that the shippers can continue with the regular work also during the holidays. This means actually that continue shipping is secured and that is definitely a very positive situation.Means also that the tanners need a constant material flow and they are not overstocked for the holiday period. At the same time what is also not got the impression that they are desperate need of raw material and that means that there raw material management has been pretty effective recently. In Europe most players are getting ready for the next round of programme deals to cover the following 4 to 8 weeks. The need a pretty clear and they seem to be as regular and stable as it is traditional at this time of the year. So people are more watching the supply side and speculate what has to be expected from the kill in the coming months.Sales during the week have been pretty light and at least we were not able to generate any bigger numbers. The few sales were pretty patchy at actually stable price levels.  

The kill: The kill has recovered and has reached again the normal levels for this time of the year. Be quantities which we had seen since November until the Christmas break are behind us and we are now seeing once again the normal production for the start of the year. Weights continue be pretty heavy for males.

What do we expect: The next weeks will now be focused on Europe. Sales should be steady without to many surprises and people will have time to think about and analyse the market trend after the holidays. At present it is difficult to find any particular reason why the narrow trading range which we experience for a while should be left and market seems in balance.


Type Weight range Avg. green weight Salted weight Avg. weight salted Price per kg green weight Trend
Ox/heifers 15/24,5 kg 22,0/23,5 kg 13/22 kg 20/21 kg € 2,20
 Steady
25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 1.60
 Steady

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 1.70

 Steady

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 1,45

Steady

30/+ kg

33,5/35,5 kg

27/+ kg

29/31 kg

€ 1,40

 Firmish
Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 1,90
 		Steady
30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 1.90
 Steady
40/+ kg 45,0/48,0 kg 34/+ kg 38/40 kg € 1.80
 Weakish
Thirds 15/+ kg 25,0/27,5 kg 13/+ kg 24/26 kg € 1,25
 Steady
Thirds bulls 30/+ kg 38,0/40,0 kg 24/+ kg 33/36 kg € 1.25
 Steady


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