This week: The standstill continued this week. Business in Asia has not really started up again after the New Year holiday, which may also be due to the Winter Olympics. The significant price difference between US and European hides is certainly playing an important role too. It is also quite certain that the future of leather demand for the coming seasons is still very unclear and the picture that is often painted is not yet sufficiently confirmed.

The danger of war in eastern Europe will certainly cannot be ignored; no one can foresee how the problem will be resolved and what consequences there might be for many areas of life and the economy. 

Many are waiting to see the results of the Lineapelle fair in Milan this week. The leather industry will want to test the mood among its customers before making any further major decisions regarding the supply of raw materials. Of course, this also applies to the raw material suppliers who, for their part, are almost universally on a wait-and-see attitude at the moment. 

Most of the market is in equilibrium and the next few weeks could be relatively stress-free on this basis. Only the market of hides for the automotive industry is out of balance. Smaller kill numbers and the eternal rumours that keep being spread in the market are causing great unrest and the meat industry is trying to convert this into significantly higher prices.

However, it is not that easy and resistance from the leather industry remains relatively high.
Similarly, although the financial results of the car manufacturers are impressive, the news of the last few weeks about production in the near future is by no means so impressive that one could speak of a great compulsion to buy raw material.

This sector is also stuck in negotiations at the moment, as the different sides’ ideas continue to diverge far too much. Presumably, the meetings in Milan this week will lead to decisions on how prices will really develop in the coming weeks and how demand and need in this sector will really look.

Sales this week were once again very, very quiet. Those colleagues who can be believed report the same situation. In the end, there were no major deals to be made, and that of course has to do with the trade fair in Milan, which is usually the venue for the conclusion of new contracts for the coming month. This left business only in specialities and lower-quality selections. Today, if there is demanded from overseas, it is usually only for low-priced goods, including splits.

The kill: Very high prices for live cattle and at the same time a relatively tough business for the prime cuts are not making things easy for the meat companies at the moment. Nobody in our region can expect anything to change in the foreseeable future. The supply of slaughter cattle will not increase significantly and prices will not fall significantly at all.

What we expect: There is little point in making market predictions now for the coming week. Much, if not all, will depend on the fair in Milan. Which leather articles will come and go, how bold leather buyers are in their forecasts, how well the pipeline is filled up and what influence the geopolitical situation will have on the mood are questions we will know more about come Friday.

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