What happened this week: The return to normal proceedings. Almost all customers North of the alps are back and have resumed buying, at least as buyers of male hides are concerned. So, the regular sales were also effected during this week and sales were entirely on asking levels. However, we are still missing additional interest from overseas destinations and in particular dairy cow buyers remained – in our case – out of the market.

From all what one can collect from the market, it seems that side leather tanners worldwide continue to enjoy good orders. Their problem seems just and only to be the raw material price level, since you find hardly anyone who is not complaining about the raw material cost level. This is partly also reflected in the steady demand for splits, although also they struggle to benefit pricewise from the increased use as a substitution for grains. In total one has to believe, that those tanners who gambled on lower levels after the holidays lost the bet and have now to cover.

Even when we think it is still too early to make a final judgement about the market, one can easily see, that the global demand for shoes and leathergoods remains steady. The car industry does also not show any signs to leave the growth track in their use of leather. Furniture in Europe is difficult, but the rest of the world is compensating. Garment is not here - not there, but running out of season. So, in total there is no reason to believe, that the demand for hides has any motive to decline in the short term, except unforeseeable political or financial incidents. With the final holiday makers returning next week one should be able to arrive to the final conclusions about tanners business in the next fortnight.