Leather Pipeline: Whispers of a slowdown in the auto - leatherbiz: Lea Leatherbiz

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Leather Pipeline: Whispers of a slowdown in the automotive sector

02/06/2015
Leather Pipeline: Whispers of a slowdown in the automotive sector
In our exclusive Leather Pipeline report, we hear the problems that have beset the industry over recent months – namely declining demand, reduced production in China and conflict over prices – continues, with no immediate sign of respite.

“We are going through a period of serious restructuring triggered by economic and environmental reasons and if one looks at the history of the leather industry it is something that happens in cycles in time frames of 10 to 15 years,” says the author.

The split market is anxiously waiting to see if manufacturers will return to the material now prices are lower, following a flee to alternatives. If they do not, the sector could face “an ugly time until a new outlet for the splits can be found”.

Another worrying development is news that some carmakers are slowing production in China, and a number of automotive tanners have reported that clients are reducing demand somewhat.

To read the full report, subscribe to Leatherbiz or visit the Market Info section.

We also present the hides and skins market from a German and US perspective.

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