Leather Pipeline: Falling oil prices could give leather substitutes unwelcome boost
In this week’s Leather Pipeline report, we learn that the massive drop in oil prices could make alternative substitutes for leather significantly cheaper, which would not be good for the industry.
The New Year has started slowly for many, with tanners in no rush to replace inventory, even though in some places, stocks are low.
The price battle between buyers and sellers continues, with sellers trying to convince the market that there is a shortage of salted material that will eventually lead to higher raw material prices.
“However, to justify such a position, demand has to exceed supply and that has not been the case for a long time,” says the author. “There is no reliable information about inventories, but it is no secret that there are still a good number of wet blue hides sitting in warehouses looking for customers willing to pay a price considered as adequate by the owners.”
The skins market seems to be picking up as prices are close to historical lows, meaning sheepskin tanners in China are snapping up material.
To read the full report, visit our Market Info page, where you can also read about the leather and hides markets from the view of both US and European players.
