US Perspective—28.08.18
28/08/2018
www.themaxfieldreport.com
Last week saw some of the big packers have a few more offers, including some who did not offer the week prior. Most packers were looking to raise prices on hides offered, raising prices $1-$2, depending on the packer, as well as the selection. What we found most interesting were reports that one of the major packers, who opted not to offer the week prior claiming they were ‘sold out’ through October, was reported to have a modest list last week, with some selections offered for shipment as early as September, only further confirming the opinions of many pundits that most packers are not sold as far forward as they have been advertising.
Most prospective buyers appear as if they were struggling with the higher asking prices and most withdrew their interest. According to reports, it appears that traders were fairly active again last week, and sources share that many of the sales was business concluded with traders. Unless those traveling were able to conclude some voluminous business directly with the tanners, last week was close to a replay of the week prior. It is highly unlikely packers cleared their production last week.
Reports from the cowhide are similar; most lists were noticeably smaller compared to a month ago and there were not nearly as many selections offered. In addition, there were a handful of producers who were not offering last week due to the fact they had people already travelling in Asia. As to asking prices, those willing to share offers were of the mindset of trying for higher prices, with most producers looking for at least a dollar more than last week. It does not appear as if producers enjoyed the same success as their big packer cousins last week.
Most buyers appeared reluctant to consider higher prices and most producers appear as if they met with a considerable amount of resistance. Those fortunate enough to sell hides had to work much harder than expected, especially those who were insistent on obtaining any appreciable increases. Not many hides changed hands and it is does not appear as if producers were able to clear their production last week.
All eyes will be on Shanghai this week as the ACLE will take place from Wednesday August 29 through Friday August 31. Some early forecasts from members of the trade are leaning towards thoughts that this year’s show will likely reflect smaller attendance numbers. We know several members of the US trade will not be in attendance this year and suspect we will see others from other parts of the world decline to attend. In the meantime, we have yet to hear claims by those who were traveling last week that they enjoyed decent sales.
As to offer this week, usually during shows most producers leave sharing offer lists to those in attendance and we do not expect anything different this time around. Considering the lack of sales we have seen over the past couple of weeks, coupled with large harvests, it will be interesting to see if this encourages packers to have larger offer lists this week.
It will be very interesting to hear the stories of those who have travelled prior to the fair about tanners’ raw material stock levels and how many drums are turning. We remain of the opinion that we have not yet seen any appreciable change in leather orders and until we see some consistent and sustained demand from tanners, we believe those pushing for higher prices will have their work cut out.
Share this story:
