Leather Pipeline: Upholstery, automotive and ‘tech leathers’ provide warmth for winter
25/08/2020
Makers of leather upholstery in China seem confident of a decent winter season, and tanners in those sectors are placing orders for higher quality hides. “The interest [in hides] is quite selective, with a clear focus on better quality and less corrected upholstery leathers.”
The automotive sector around the globe continues to pick up, although it is not at ‘pre-covid’ levels in most parts.
There has also been demand for “tech leathers” – for instance, to make cases for tablets, smart phones and e-book readers. “What used to be a very cheap sector, mainly made by all kinds of leather trim, has become something of a status symbol with brands choosing quality material,” says the Pipeline author.
Sadly, the shoe sector remains fraught, with some big Asian footwear manufacturers suggesting orders are down between 40% and 60% on a year ago. Transport issues and exchange rates are also causing headaches. “Shipping companies have increased freight rates. Most hides and skins are still traded in US dollars, and its declining value is making it difficult for certain origins and taking away returns for others due to higher shipping costs. Collection and processing cost of hides and skins have also increased, leaving the revenue for the butcher and the farmer with very little room to rise despite the better sales.”
However, the overall sentiment is positive: “We see so many people in the industry now working so hard for leather. The good reasons remain the same: value is generally the currency of the crisis and this means we are still more positive than negative for the coming season.”Read the full report, as well as information on US and German hides markets, on the Market Info page.
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