Automotive slowdown impact on French hide prices
Published: 05 Dec, 2018
The slowdown in the automotive business, and specifically the recent announcement made by a large German tanner, triggered a sharp drop in bovine salted hides prices. This impacted bullhides the most, which up until the end of October had seen only limited adjustments, against the widespread downturn of the market hitting other origins and local cows. This fact is particularly significant, as French bulls are considered among the best available, underlining how the generalised declined has now reached the top end of production. Offers were cut in the region of €¢20/kg, or about 10%, on all weights on sale. Much like what is believed to be taking place in neighbouring countries, a significant correction for bull hides is likely to take place in the coming period, to bring prices more in line with world market levels.
Cowhide prices also saw a similar percentage drop in their November quotations against previous offers, as sales remain difficult and competition strong among suppliers.
On the run up to the end of the year it is highly likely that some customers want to limit their quantity of stocks. Reduced finished leather orders continues to weaken demand. To read more click here.