UK and Irish hide suppliers adapting to the new market reality
Published: 05 Dec, 2018
The leather pipeline is coming to terms and adapting to the new situation in the automotive segment. This has meant losing the one successful segment that helped a good part of the hide production stay afloat, when other important outlets such as footwear and, to a lesser degree garment were weighing negatively on the overall demand. What is happening is a cut back of purchases along the whole supply chain, moving upstream from automakers to hide traders buying green hides from abattoirs. Using up as much stock as possible before new supplies are sought is the current logic. Together with difficulties from other segments, this is seen by many traders as another unescapable sign that prices are destined to come down even more. The seasonal slowdown across December/January, coupled with abundant availability of hides, will only make this scenario even more likely. The latest offers circulating both for the 36/+ kg and 31/35.5 kg ox/heifer hides are reported at £1.06/kg ex works, but the general level is quite opaque and said price should be considered in the upper range of the price interval.
The lambskin market is also confirmed as very week, with older lambs offered at £0.50/skin at abattoirs, but on their way to be worth nothing or even charged to be taken away. To read more click here.