US PERSPECTIVE—28.01.20
28/01/2020
www.themaxfieldreport.com
Reports from the big packer trade suggest a fair number of bids from potential buyers outside Asia last week. With most Asian tanners out of the office observing Lunar New Year, there were not as many bids to choose from. We did hear reports of a few larger tanners submitting some voluminous bids, but at levels well below the last traded levels, which was being interpreted as these tanners testing the market or testing the sold-forward positions of packers. As of this writing, we are not aware of any of the packers doing more than countering these bids at full asking prices.
The leather business appears as if it is decent for a number of segments, as members of the furniture trade claim there appear more than adequate orders. Sources are quick to share that profitable business is not as easy to come by. Many tanners appear to have reservations when talking about hides for March shipment or later, as this is the start of most tanners’ slow season and with prices firming, there are few, if any, willing to gamble at the moment.
Reports from members of the shoe and handbag trade claim that tanners enjoy decent leather orders, although contradicting these claims are the actions of tanners who decided to close early for the Lunar New Year holiday. Reports from members of the automotive segment claim business is somewhat sluggish at the start of 2020. There have been rumblings of a couple of larger tanners exhibiting signs of increasing their requirements heading into the holiday; we will have to see if other automotive tanners follow.
Reports from members of the cowhide trade claim a number of producers had smaller offer lists last week compared to the week before and rumblings that a number of producers enjoyed some decent sales.
Buyers acknowledge the firm tone of the market; however, it appears there are few, if any, who are looking to pay more for hides this week. That said, buyers with ideas of trying to buy hides lower are discovering producers unwilling to negotiate prices.
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