German Perspective - 9.2.16
09/02/2016
News about the global economy remained pretty bleak.
Some companies are still thriving on orders and sales from 2015, but many are getting concerned about the second half of the year.
China remains the main worry, and that applies to the leather industry in particular. Almost every week there is news of factories and shops closing as a result of falling consumer demand, but also as a result of the sharp rise of production costs in the country.
Trading was very light during the week. Heavy, quality male hides are supported by the very low kill. For the rest, the market was non-existent due to the holidays. That made sales very slow and only focused on the automotive sector. Prices are just holding on, but in the weeks to come it will become more difficult to find a market level also to the decline of the US dollar.
The kill: The meat business is poor and the prime qualities cannot enough buyers; this can be seen in the low volume of bulls. Cows are still coming in due to the low price of milk, but numbers are nothing special. Next week there will be no change due to the carnival week.
What we expect: The next two weeks at least will be very quiet. Better quality hides will do better and the low kill will not push anyone to change position. However, the question is what happens next and in March and this will certainly depend on financial news and the feel people get from the upcoming leather and finished goods fairs.
Share this story:
