Leather Pipeline: Tanners’ long holiday breaks are a clear indication of low demand
16/12/2015
The year is winding down quickly and next week will be the last in terms of regular production.
While we have seen battles over prices between hide sellers and tanners, the market levelled out in spring but has struggled to maintain the equilibrium.
“In short, prices concluded in early November are the ones the industry could digest but the ones asked today don’t reflect the reality of the leather market,” says the author.
“The seller puts the price tag on the product and waits. If only one customer buys one hide the price is confirmed and becomes the reference of the price graph of the day. As the real values and volumes are not in the reports, it leaves the market open to interpretation.”
The automotive market remains the only strong sector. There is little demand for low-quality raw materials and even premium materials such as calf have lost 30% to 50% of their value in a year.
As the industry downs tools for the holidays, it will be a chance to reflect and hope for better demand next year.
Head to the Market Info page to read the report in full. You can also read about the hides markets from a US and German perspective.
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