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Leather Pipeline warns that price problem could spread

The latest edition of our exclusive fortnightly market intelligence report, Leather Pipeline, brings a warning that some of the problems that have afflicted tanners of lower quality materials could soon also affect producers of high-quality leathers.

“The problems could spread because tanners of better quality leather are starting to feel the pain in the distribution of their lower selections,” the report says.

In order to meet the demand for high-quality leathers, tanners must secure quality hides, which come at a high price. The problem is that they must also find a market for their lower grade materials, the demand for which continues to fall.

“They usually have customers to take them, which are sometimes their prime customers, but there are so many cheap offers circulating that buyers are dropping their prices,” the report explains. 

It adds that the drop in prices for lower grade materials means the average return for these tanners isn’t enough to cover the cost of purchasing the expensive hides that are key to their business.

While producers that are cutting their leather can cope, it is getting difficult for others, the Leather Pipeline reveals. 

The full report is available here.

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