Friedrich Sturm Report - 21.04.06
The number of people expecting the market to slump in June/July is declining as most are now realising that most hide suppliers are in a decent the sales position there is little hope of any unsold hides accumulating in the short-term that could create any pressure on the market or prices. In fact quite the reverse is true as decent interest in hides was seen and the supplies which were still on offer were snapped quickly up and found homes without too much argument if one was willing to accept moderate prices increases. Tanners still need to cover some production holes before the summer vacation and most seemed happy just to bring the season to an end and analyse how things are going to develop in the second half of the year during the summer.
There is a general consensus that leather prices will not advance to cover the increased cost of production and raw material and in some grades, particularly on small skins, alternatives such as goat and hairsheep leathers were displayed as an escape from the limited supply and prices for adequate raw materials such as calf and veal. How successful this is going to be depends on how the manufacturers respond and it will take a few weeks before a clear picture emerges. The same applies for heavier side leathers and upholstery. Quality tanners are happy that their regular suppliers are following them and, in most cases, are trying to stick to those they know instead of testing new options in their customer list. It might have been possible to squeeze a bit more out of new customers but, in general, most customer/supplier relationships are not put at risk for the sake of a few cents more.
This also clearly displays that the majority of the trade is now taking note of the rising tensions in the market which are also related to external factors such as further energy and chemical price rises, and rising interest rates, etc., which eventually might have an impact on the global economy. Sales where across the board a bit and in our case the hides reserved for the regular customers found homes. Incrementally higher prices versus some weeks ago were achieved in the European customer base while overseas calculations were burdened by the falling value of the
The kill: The kill is further declining and has been particularly reduced by the short weeks which we will see in the near future. There are several four-day weeks are ahead of us and the numbers will also be affected by the seasonal decline in volume and weights. Bottlenecks in fresh hide supplies are to be expected as a consequence.
What do we expect: There is no change in the trend at the firm side of steady. As there are not many more hides to sell, it is not easy to test how far this market can still be pushed. At the end of the day, however, it seems that buyers and sellers would also be quite happy to see a stable market now with not too much movement in the short-term. An extended weaker trend of the
|
Type |
Weight range |
Avg. green weight |
Salted weight |
Avg. weight salted |
Price per kg green weight |
Trend |
|
Ox/heifers |
15/24.5 kg |
22.0/23.5 kg |
13/22 kg |
20/21 kg |
€ 1.65 |
Steady |
|
|
25/29.5 kg |
27.5/28.5 kg |
22/27 kg |
25/26 kg |
€ 1.50 |
Steady |
|
Dairy cows |
15/24.5 kg |
22.5/23.5 kg |
13/22 kg |
20/21 kg |
€ 1.67 |
Steady |
|
|
25/29.5 kg |
27.5/28.5 kg |
22/27 kg |
25/26 kg |
€ 1.47 |
Steady |
|
|
30/+ kg |
33.5/35.5 kg |
27/+ kg |
29/31 kg |
€ 1.37 |
Steady |
|
Bulls |
25/29.5 kg |
27.5/28.5 kg |
22/ 27 kg |
25/26 kg |
€ 1.62 |
Steady |
|
|
30/39.5 kg |
36.0/37.0 kg |
24/34 kg |
31/33 kg |
€ 1.53 |
Steady |
|
|
40/+ kg |
45.0/48.0 kg |
34/+ kg |
38/40 kg |
€ 1.42 |
Steady |
|
Thirds |
15/+ kg |
25.0/27.5 kg |
13/+ kg |
24/26 kg |
€ 1.20 |
Steady |
|
Thirds bulls |
30/+ kg |
38.0/40.0 kg |
24/+ kg |
33/36 kg |
€ 1.20 |
Steady |
