German Perspective - 21.02.17
21/02/2017
Sellers continue to claim there is good interest and some of them are even pretending having obtained better money. Clients on the other hand continue to deny having paid any higher levels since the Chinese holidays. Tanners must have a well-planned inventory-supply situation and have not needed to switch back into the purchasing mode. Suppliers claim to be well sold forward and customers say they have sufficient inventory not to be threatened and stay out of the market for weeks.
Both sides are in a fair balance for the main articles and will have waited for the start of the Lineapelle exhibition in Milan (February 21) to see the next trends. The high-end sector for accessories, shoes, furniture and general fashion is doing quite well anyway and as far as we understand it, the core players in this segment have already agreed some kind of longer-term programme deals. The prices for this kind of raw material are high anyway and they play only a very limited role in the finished products’ general market conditions.
It’s at a completely different price level, but we would say the same conditions apply in the large, industrial tanning sector too. Any new indications and trends that could have an effect on the market have to come from those manufacturers who could use leather but are not obliged to. For the time being it seems still that it is all about price. This may explain the reluctance of some buyers, because they are working against contracts that were signed at the beginning of the season and do not allow for any significant higher raw material cost at this stage.
As a consequence, the tanners are just buying what they desperately need to finish the current season before taking any new decisions about the season to follow. Being now already at the end of February, the next shipments will find available shipping space only in the second half of March so we are talking already about arrivals towards the end of April, already the end of the busy season of leather production in the annual cycle.
Trading and sales this week were under par and less than one would expect for this time of the year. However, one can still sense solid interest for good-quality, heavy cowhides as well as ox or heifers. All other items are much more complicated and bids are a few dollars below the asking levels, which is why it is difficult to finalise agreements about sales. The general pattern of the market has not changed. Good-quality, heavy hides generate interest while low-quality, lightweight hides struggle. In aggregate it is fair to call the market about steady.
The kill: The kill has nicely levelled out and we would even say that this week saw bit more volume. In the end, the numbers for February are still very reasonable if not better than expected. There are still far more females than males in the mix. Males continue to be extra heavy and females less than normal.
What do we expect: We do not see what could change the steady conditions. Only some big surprises during Lineapelle might be able to move the market in either direction. Sellers will try to push as usual at this time of the year and tanners will just buy what they absolutely need. This could be the market situation until the end of March, until after APLF exhibition in Hong Kong.
| 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 |
€ 1,50 |
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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