Taking a moment to relax and think about the situation, one cannot deny that tensions in the markets are constantly growing. The gap between sentiment and the economic realities in the leather business continues to widen and where conditions are overstretched, they will need to return to a normal balance. Insufficient or non-existent margins in the manufacturing pipeline have not improved or been resolved for quite some time. Hopes for a raw material price adjustment to sort this out have been unfulfilled so far and the vast majority of hide prices around the globe facing strong demand and forward positions remain well protected against major corrections in the near future. However, with the massive profitability problems, the demand for raw material continues to shift into the lower and more economical end.

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