A gradual correction in raw material prices is what the industry needs
11/11/2014
Demand for raw material is quite a bit lower than a year ago and several types of hide have already corrected in price, the report says. It makes it clear that a gradual, steady correction will be much healthier for the global leather industry in the months ahead than any abrupt change.
It goes on to suggest that this is an indication that leather demand is down, but goes on to make two important points about this.
After what the Market Intelligence refers to as “hype and high prices” earlier this year, a drop in demand for this season was to be expected, particularly in end-use markets that can switch to cheaper materials quickly and easily.
Secondly, the report makes it clear that, while many tanners are reporting that business is less than buoyant, they insist it is still within the ranges we might expect in the market at this time of year. “Taking a little bit of a closer look it becomes obvious that the situation is not nearly as bad as many people believed it might be,” it says.
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