Hide and leather prices to go down
08/01/2009
Senior figures in the leather industry in Brazil are predicting that local hides and leather will become more available and more affordable to manufacturing companies in the domestic market this year.
The downturn in the economies of North America and Europe is having an impact on Brazilian leather, albeit indirectly, as demand for the material from tanneries and footwear factories in Asia has dropped.
Francisco Santos, president of the Couromoda exhibition, which takes place in Sao Paulo in mid-January, has told local media that he thinks hide prices in Brazil could drop by between 15% and 20% as a result. "There is going to be a greater supply and that will push prices down," he said.
Cesar Augusto Stroher, director of the Cariri group, from the main leather and footwear producing state of Rio Grande do Sul, explained that the price of leather started to fall in 2008. He agreed that the chances are that prices will fall further, estimating a figure of 15%. His company manufactures leather shoes, exporting around 80% of total production, about 2,500 pairs a month.
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