The Leather Pipeline: astounding that shoe manufacturers are not using splits
The author of our Leather Pipeline report has said the prices of splits and skins are now so low that it would be a "miracle" if big brands and retailers do not start using them for products.
“However, this hasn’t been seen yet and the next three months will be very important in terms of whether the big brands and retailers around the globe have the courage to promote lamb, sheep and goat leather again.”
Their risks would be pretty limited, given the price levels, the author adds.
There are also reports of leather buyers asking for substantial discounts on finished leather prices “but this is not fair, because tanneries have been producing with negative margins for some time”.
Following the landslide of raw material prices since spring, the downward dynamic has been fading and the conditions continue to stabilise.
“We are still seeing a massive surplus of medium and low grade raw materials and more than abundant supply. Warehouses are full. This will keep leather prices under control,” says the author.
To read the full report, head to the Market Info page, where you will also find analysis of the market from a German and US Perspective.
