What happened this week: The week was completely focused on the show in Bologna, but anyone expecting breaking news or a big change in the current trends was disappointed.

As one expected, market opinions drifted apart but the vast majority of visitors accepted the fact that the fundamental pressure on raw material prices has still not faded. The market correction was mainly related to currency matters, cash-flow problems, the rise in the cost of production, etc., although this has, in the main, been cushioned by a decline in raw material prices. What is different now compared to the situation in the past is the fact that the market decline is not being caused by a general fall in demand for leather or leather goods. Therefore very few are complaining about a lack of orders, but almost everyone is grumbling about profitability at the moment. This situation was sharply illustrated by the bankruptcy of a large, well-known tanner in south of Italy. Although it was a skin tanner, and may have been facing its own problems, it has been viewed as a clear reflection of how quickly things can happen, pretty much out of the blue.

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