Companies are complaining about a lack of orders and the impression is that economic activity has been suppressed because of covid-19. This is certainly true for tourism and related industries, restaurants and cultural life, as well as textiles and shoes, but generally, covid-19 has become an excuse. Shipping is an example: it's hard to believe how difficult it is to get sufficient freight space and timings at adequate prices. Nobody can be blamed, because this is what is called 'capitalism' and a free market - as long as taxpayers’ are not paying for it. 

The question is whether slowed economic activity will lead to a rise in production after the summer break. General activity in China has rebounded solidly and many sectors report almost pre-crisis levels. This also applies in part to the leather business. There is a lot of justified scepticism about the Chinese policy, but the rest of the world could do with following its lead in some respects to manage the situation a little better. 

Business this week was a little better, especially in terms of sales to China. Several clients realise that they must act if they require specific raw material types. For commodity types it doesn't matter, but for specialties, clients have to make a decision now. 

Several sales this week might have been a lucky punch, but the total number was better than expected. Prices did not vary much from the weeks before. Cows and bull hides were topping the shopping list. 

The kill: The kill continues to be the same: stable, decent levels for the season, and with higher weights than usual.  

What we expect: Every week is a new gamble. If interest is sustained, we have a chance to manoeuvre through the coming weeks. We would not be surprised to see further interest for quality hides from Asia in the coming weeks. European tanners might be taking it a bit too easy.

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