Leather Pipeline: Price corrections exceed ‘wildest imaginations’
The hide price correction of the past few weeks has exceeded even the “wildest imaginations” of those at the Asia Pacific Leather Fair in early April, according to our exclusive Leather Pipeline report.
Added to a US dollar adjustment of between 5% and 7%, this has meant a total price adjustment of between 10% and 20% between the competing origins – meaning European suppliers have lost their currency "advantage" over US and Brazilian hides.
He says a break in the declines would be best for everybody to “give everyone the chance to sort their positions out” but forecasts it is not likely to halt.
Our author says: “The problem is that nobody really knows where the real prices are at the moment. Business has not halted completely, but buyers in Asia in particular are selecting their suppliers carefully. The reliable ones can therefore defend much better against the trend than others. If we look at the prices we can confirm we can see differences between 5% and 7% for the same origin and description.”
The full report is available to paid Leatherbiz subscribers on our Market Info page. There, we also publish market intelligence from a US perspective and a German perspective.
