Leather Pipeline: Tanners have the upper hand – but business seems unnervingly quiet
In this week’s Leatherbiz Weekly we learn that activity in the main tanning centres is said to be very quiet - it is the wrong time of year for this, as the upcoming holiday seasons usually create a rush for demand before the lull after the Chinese New Year.
“We have been warning about the long-term effects of inflated leather prices for a long time. The pricing strategy of the large hide producers and the speculation of semi-finished producers and traders have pushed leather prices ‘over the cliff’ and triggered new material strategies for many product manufacturers,” says the author of our exclusive report.
“The end of the bull market cycle seen in the second quarter has also reduced the interest of traders, with many trying to wind stocks down. Either for market or cash-flow reasons, this has shifted the market balance. For the moment, supply is exceeding demand and production needs.
“Tanners and leather users are seeing, for the first time in years, a serious chance to average their raw material cost down.”
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