German Perspective - 22.9.20
22/09/2020
Nothing fundamental has changed. The furniture industry has taken advantage of cheap leather prices to use more of the material. Vehicle manufacturing is going through a period of normalisation and this is solid not only in Asia but also in Europe. However, a profound improvement for side leathers cannot be seen except the seasonal restart of production. Some people play the supply card, pointing towards lower kills, while others play the demand card, believing the demand for leather has fundamentally gone up and it is not just a correction for the excessive caution the leather industry took in the second quarter and the summer. If all our hopes materialise and consumer demand continues to grow, a steady rise would be healthy and beneficial.
The sharply increased abattoir prices could not be converted immediately into the equivalent selling price, with tanners all over the world willing to grant up to half of the asking price at the abattoir door. Interest from upholstery and automotive tanners was stable, but strictly limited to certain price levels. Sales numbers were acceptable for the week, but not evenly distributed across the hide types. Females, upholstery hides and heavy males for the automotive industry continue to be the focus while standard side leather hides remain on the side lines. Prices paid were about 5% to 8% higher versus a month ago.
The kill: Reasonably warm temperatures are keeping farmers busy with everything except selling cattle. Consequently, slaughter numbers were moderately lower and until the temperatures drop more seriously, we will have to wait for the next step in the seasonal rise.
What we expect: We are in a state of stalemate with sellers neither willing nor able to adjust their asking prices and buyers not willing to simply concede. The next couple of weeks will become a test of who is going to make the first move.
| Type | Weight range | Avg. green weight | Salted weight | Avg. weight salted | Price per kg green weight | Trend |
| Ox/heifers | 15/24,5 kg | 22,0/23,5 kg | 13/22 kg | 20/21 kg | € 1,00 |
Steady |
| 25/29,5 kg | 27,5/28,5 kg | 22/27 kg | 25/26 kg | € 0,70 | Steady | |
|
Dairy cows |
15/24,5 kg |
22,5/23,5 kg |
13/22 kg |
20/21 kg |
€ 0.65 |
Steady |
|
25/29,5 kg |
27,5/28,5 kg |
22/27 kg |
25/26 kg |
€ 0.55 |
Steady | |
|
30/+kg |
33,5/35,5 kg |
27/+kg |
29/31 kg |
€ 0.50 |
Steady | |
| Bulls | 25/29,5 kg | 27,5/28,5 kg | 22/ 27 kg | 25/26 kg | € 0,65 | Difficult |
| 30/39,5 kg | 36,0/37,0 kg | 24/34 kg | 31/33 kg | € 0,70 | Steady | |
| 40/+ kg | 45,0/48,0 kg | 34/+kg | 38/40 kg | € 0,70 | Steady | |
| Thirds | 15/+kg | 25,0/27,5 kg | 13/+kg | 24/26 kg | € 0.30 | Steady |
| Thirds bulls | 30/+kg | 38,0/40,0 kg | 24/+kg | 33/36 kg | € 0.35 | Steady |
|
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