German Perspective – 27.2.18
27/02/2018
If we focus on what Lineapelle is, and if we consider that the Tanning Tech machinery fair held at the same time attracted additional and more technical visitors, we have to be fully satisfied. In the quality and fashion range, the fair in Milan shows leather has lost nothing of its beauty and attraction. For those confronted with the daily boring challenges, specs and audits of industrial and mass production, the show really is a relief and a vision of what leather production should be.
It offers a look at what nature has to offer, combined with inspiration, creativity and a desire to become a long-lasting and environmentally friendly material. The pleasing aesthetics and sense are a contrast to the slavery of industrial standards, which have made and continue to make the product increasingly replaceable.
So, every six months it is a pleasure to see there is so much more that can be done and that there remains a vivid community to stem against the trend. However, to consider the community in Milan as representative of the industry would also be wrong. The exhibitors, with the exception of some Italian groups, do not represent the majority of global leather production.
One has to be careful not to mix these two worlds with your impression of the show. We brought home two key conclusions. Leather continues to suffer against alternative materials, but there is still a large community willing to use it. If the quality is right, the senses are hit, the ideas of designers and manufacturers match, and the structure of the customers is met, there is still a market for many kinds of leather.
For the commodity types, which makes up the majority of the market, the situation is different. Milan is not the place for such material, but it is a place of gathering. As usual when many people meet, there are lots of talks and rumours spread quickly. The problems around medium and lower selections and qualities are mounting. The stocks, which had been neglected and hidden for a long time, were openly discussed and many people finally realised we are facing a problem of demand rather than price.
In addition, the spread of prices is far too great and several hide types can no longer justify their price levels when their returns are matched with other options. This was visible in European cows, which were discounted as soon as sellers realised that the constant flow of chilled production to Italy would come to a halt if the prices indicated by Italian customers were not accepted. With the present selection result and cheaper alternatives from South America, sellers didn’t seem too optimistic about China as an outlet so lower levels were established on day one.
Owners of wet blue stocks of lower selections produced in recent months seem quite nervous. They also had to realise that they might be in possession of them for a while yet. Sales for heavy and good quality hides were made, although price discussions have intensified and moderate concessions had to be made. The ‘Lineapelle article’ – calves, kips and specialties – found homes, while commodity types struggled. We must now wait to see how the Chinese market performs after the New Year break.
The kill: The kill is slower due to the season. In particular, males are missing and there are various reasons for that coming from the beef market. A minor and local scandal around a smaller slaughterhouse is adding to the trend at the moment.
What we expect: Lineapelle may have been the first trigger for price adjustments within the global raw material range. In raw or in semi-finished selections, the prices are realigning to the realities of the global situation of leather demand. This means several types are falling in price because sellers have given up on their hide-and-seek policy. With APLF in Hong Kong just a few weeks away, we will have to wait and see where this leads us.
| 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 |
Stable |
| 25/29,5 kg | 27,5/28,5 kg | 22/27 kg | 25/26 kg | € 1.30 |
Weak |
|
|
Dairy cows |
15/24,5 kg |
22,5/23,5 kg |
13/22 kg |
20/21 kg |
€ 1.40 |
Weak |
|
25/29,5 kg |
27,5/28,5 kg |
22/27 kg |
25/26 kg |
€ 1,15 |
Weak | |
|
30/+ kg |
33,5/35,5 kg |
27/+ kg |
29/31 kg |
€ 1,10 |
Weaker | |
| Bulls | 25/29,5 kg | 27,5/28,5 kg | 22/ 27 kg | 25/26 kg | € 1,70 |
Weak |
| 30/39,5 kg | 36,0/37,0 kg | 24/34 kg | 31/33 kg | € 1.70 |
Weakish |
|
| 40/+ kg | 45,0/48,0 kg | 34/+ kg | 38/40 kg | € 1.65 |
Stable |
|
| Thirds | 15/+ kg | 25,0/27,5 kg | 13/+ kg | 24/26 kg | € 1,00 |
Stable |
| Thirds bulls | 30/+ kg | 38,0/40,0 kg | 24/+ kg | 33/36 kg | € 1.10 |
Steady |
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