This week: We cannot remember a summer with so little activity. This is certainly due in large part to the fact that the market in China is still closed to us, but that is really only part of the current situation.

As already noted several times in previous issues, European tanners have now finally gone on their summer holidays and it remains the case that it can almost be seen as an escape so as not to have to deal with business for a few weeks. Of course, this will not apply to everyone, but for most the problem of insufficient orders remains acute and no solution is really on the horizon for the coming months.

The latest news from the European automotive industry may not have been a surprise, but it was no cause for hope either.

The situation was similar for most of the major leathergoods brands, which, with very few exceptions, were unable to report satisfying sales. These are all just the companies that have to publish their business performance. For the others, the real situation remains hidden, at least for those who do not have direct access without a direct business relationship.

One thing can probably be said without much exaggeration: There are not many positive voices to be found at the moment.

What consequences this will have and how things will continue for the rest of the year after the holidays will probably only become clearer in the course of September. As this is the case, there is no really significant information to provide at the moment. The necessary orders and deliveries have been agreed in the last few weeks without planning more than the bare essentials for the restart after the holidays. In all cases, however, it can only be described as a basic supply. However, due to the low level of slaughter, it is not particularly significant at the moment.

Even without being able to export directly to China at the moment, the markets in Asia are showing little activity at the moment. High-quality hides are being sought, but the price expectations of interested buyers simply cannot be realised. In the case of standard types, if there is any interest at all, it is all about the price. Even then, people are really only looking for exceptional ‘special offers’. In this environment, one should assume that this would exert additional pressure on prices. However, this is not the case at the moment, so the reduced activities are dragging on more or less unchanged.

The kill: There is no news to report on the slaughter side. The volumes are low, but normal for the summer. Prices for live cattle are crumbling somewhat, but this is not at all surprising after the sharp rises of recent months. The realities on the beef market will only become apparent after the summer and the possible changes in the meat industry in Germany may also play a role.

What we expect: The All China Leather Exhibition will take place in Shanghai at the beginning of September, and one gets the impression that the number of visitors and international exhibitors will probably be significantly reduced this year. Many seem to be deciding very late. In short: without any surprising activities in the near future, there will be no changes.

Price Table

Share this story: