In our case, we are not willing to take any further forward position and have now stopped additional long-term exposure. This may be a risky policy considering the $, the high level of uncertainty about the US consumer market and the problems in the Chinese tanning industry, but cheap selling is always an option. Although there is presently very little hope for a short-term market consolidation, it seems that the balance between supply and demand has been reached for raw material and it is encouraging that contracts are still being honoured and that shipments have not slowed down at all. There is very little to gain in this market anyway. A significant short term rebound in prices is very unlikely and trading activity will decline as a result of the summer holidays.

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