This week: Although one-twelfth of the year has already passed, 2026 has not really gained momentum yet. Tanneries continue to complain about a sluggish order intake, and the clock is ticking, making it clear that something really needs to change for the better.

Consumer sentiment is certainly at its weakest in Europe, and particularly in Germany, and this cannot be compensated for by exports.

Another significant burden emerged this week from the currency markets, as the US dollar weakened noticeably once again, further increasing the pressure on export prices denominated in US dollars.

In Asia, the impact of the upcoming holiday shutdown is now clearly being felt, in some cases leading to planned shipments being postponed or required payments not being received. In Europe, the major suppliers continue to defend the market for heavier male bovine hides. While the main users of this material, suppliers to the automotive industry, are still unable to return to their former capacity utilisation, reports indicate improved activity at the well-known contract tanneries. As a result, noticeably more material is once again being directed into the hands of traders and marketeers of selections.

Another factor is the splits and protein return. Whether all this will actually be absorbed by corresponding demand for leather will certainly become clear in the coming months. Reports from European tanneries remain far from enthusiastic. This leaves hope that the relatively cold winter across large parts of Europe and also in the US has at least helped retailers clear their stocks of winter boots, gloves and garments, encouraging them to place orders for the next autumn-winter season with renewed confidence.

In summary, prices to overseas markets remained relatively stable this week; however, the significant decline of the US dollar placed corresponding pressure on revenues in euros. For male hides, decisive negotiations between the major slaughterhouses and buyers are likely to take place in the coming weeks. The fully integrated leather industry will almost certainly no longer be willing to pay the prices that have been in place for months. This will depend on whether sellers can find alternatives or whether they may be forced to hold back material in anticipation of better times. These better times will, of course, still need to arrive. Until then, a reassessment of prices appears unavoidable. Thus, another unspectacular week comes to an end, in which buyers’ willingness to purchase and their price expectations have been the determining factors.

The kill: The meat market is similarly uneventful overall. Prices for live cattle have changed only marginally, with weather conditions remaining a decisive factor, and slaughter numbers therefore showing little variation compared with the previous week. Given reduced milk prices, a higher proportion of cows might have been expected, but so far this has not materialised either. Carnival season may also be playing a role in this context.

What we expect: The coming weeks are likely to be influenced primarily by the holidays in Asia and probably also by the upcoming Lineapelle fair in Milan (February 11-13) in the sense that little activity can be expected beforehand. Most raw material needs are likely already covered, and only in Europe will renewals and extensions of existing contracts take place in the coming weeks. Anything other than difficult negotiations for male hides would be a surprise, and it will be interesting to see how far apart the expectations of buyers and sellers ultimately are and how these differences can be bridged. 

PRICE TABLE

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