Currency issues weighing heavily on hides and leather trading
The declining euro is having a big impact on hides and leather trading across the globe, with European sellers finding themselves increasingly competitive but with others now asking for currency adjustments on dollar-based leather contracts.
The editor of our German Perspective on the market this week says it will have long-term effects.
“The fluctuations are just too large to be managed,” the author says. “A few percent in a longer period of time can be handled, but moves like those seen this week cannot, and have long-term consequences.”
The author says the next few weeks are going to be critical and budgets made in the last quarter of 2014 might have to be re-adjusted. “Low energy prices and the weak euro are paving the way for successful business [in Europe]. The conditions are significantly better than they were a year ago.”
Head to our Market Info page to read this week’s views from a German perspective and a US perspective.
