Market Intelligence: Good news for some at Lineapelle
A new edition of the Leatherbiz Market Intelligence newsletter went live on February 27 and is now available to read in the Intelligence section of the website.
On this occasion, the newsletter reflects on the recently concluded Lineapelle exhibition, saying specialised leather manufacturers focused on fashion “showed once again the interesting and beautiful articles they bring to Milan every six months”.
According to Market Intelligence, these manufacturers consistently demonstrate “the beauty and the superior usage properties” of leather, and many continue to report “satisfactory, sometimes even very good business results”.
At the event, though, the extent of production cuts among automotive leather producers, which that began last year, with more to come in the coming weeks and months, was also part of the conversation.
The newsletter says it is clear how much the entire environment for the automotive segment, the biggest user of the highest-quality male hides, has changed. Since the beginning of 2024, production levels in automotive tanneries have, at best, been at 50% or 60% of previous levels.
It claims that the automotive industry has become “increasingly price- and cost-conscious and no longer wants to pay premiums for an exclusive raw material”. Its conclusion is that this special raw material, large male hides of European origin, “must now find a new, justifiable price level”.
