Industry feels consequences of 2014 price hikes
16/06/2015
According to the report, which subscribers can read in full at this link, high raw material prices meant finished leather became too expensive to be competitive in many finished product areas, leading to a decline in leather demand while global production capacities were too high. In fact, it says that the situation may have become even more serious if the authorities in China had not lowered production levels there by clamping down on inadequate environmental management standards in some areas in the early part of 2014.
Even now that raw material prices are correcting, there is still too little demand to end the slow-down in the raw material pipeline. This is partly because the industry is entering a slow time of year.
However, the Market Intelligence report makes it clear that leather production continues and that demand is healthy in some market segments. It says a pick-up in demand in the market in general is possible in the autumn.
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