What happened this week: As expected we had to go through another quiet week of trading. With most of the trade busy trying to reach agreement with butchers over the market trend and abattoir prices, selling was not the focus of interest. In addition most players are waiting to see the results and impressions offered from the Bologna leather fair next week. This event is still the best indicator in terms and fashion and goods trends and, let’s not forget, it also offers a decent insight into the situation of the European tanning industry. In combination with Shanghai about six weeks ago, Bologna closes the round of important leather fairs and this traditionally marks the start of the winter production cycle. Although there was some bad news circulating the market this week, such as the cancellation of credit insurances for a major tanning group in Italy (already having been in the limelight for some time), further problems for UK and Irish suppliers to move enough product, and the continuing volatility in the currency markets — to name few — hope is rising that the market might be in the final lap of its correction phase and could eventually settle after Bologna.

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