Leather Pipeline: the market has entered a new phase
09/12/2014
“It usually takes double the time to get prices up than it takes to bring them down again,” the report says in expressing sympathy for tanners, who have worked hard for many months to achieve an increase in the price for finished leather. “We wish the tanning industry the discipline to withstand major correction, however the present prices seem not to be creating enough demand to keep everyone in full production.”
The report says prices are readjusting to levels that are more in keeping with the situation in the wider economy. So far, it seems that tanners have done a good job of keeping things under control and that the change will be gradual and manageable rather than abrupt and dramatic. However, it warns that how long and how deep the correction phase will be depends on a number of factors, including “financial resources and psychology” and is therefore not something that can be easily predicted. “A little trigger can cause a big reaction,” it says.
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