Leather Pipeline: Chinese tanners turn to European hides

10/03/2015
Leather Pipeline: Chinese tanners turn to European hides
Our Leather Pipeline report suggests tanners in China are beginning to source higher quality raw material from Europe, taking advantage of exchange rates but also in a bid to raise quality levels.

“Demand for hides has changed by quite a bit since the beginning of February,” says the author. “Interest for dairy cows, which had been dominant for a long time from Asia, is significantly down and interest for males has significantly increased.”

It is suggested this could be a bid to focus on quality for the domestic market, with production costs rising in China.

There are mixed reports from Lineapelle, where some tanners suggest orders from footwear and leathergoods brands are slow, while the industry waits to see how the US’s west coast ports problem will unwind.

“Even if we are not discussing potential risks from the price side we have to assume that all the hides which were stuck in January and February are now going to be shipped over the next 60 to 90 days. This should mean the drums of the tanners, in particular in Asia, should be filled with hides arriving from the end of April until the end of June,” the author adds.

To read the full report, or a market perspective from the US or Germany, visit our Market Info page.