Bulletin

Most suppliers report that there has been no real improvement in the number of bids coming from the Far East tanners this week, over the number received last week, with last week in itself being a very poor week. 

Sometimes stories come in that are so odd, you just know they have to be true.

A well respected and long term supplier of hides from Australia reports of his recent troubles following a visit to Chinese tanners. 

As is well known, meat consumption in the western world has fallen over recent years; and is predicted to continue to fall as people change their dietary habits. But while the western world reduces its meat consumption, other parts of the world are becoming more affluent and their diets requirements are changing. 

At one time the hide or skin was regarded by abattoirs as the 5^th quarter; in other words, it was not factored into the overall costing when purchasing the cattle from farmers. 

The bottom line of the state of the trade last week didn’t change much from the prior ones. Decent business on the all-important European market, and negative conditions on the Chinese front.

As reported by theSauerReport, some slaughterhouse’s in Europe which normally sell their raw hides fresh, delivered into Italian tanneries, are having to now have these same hides contract wet-blued because of the down turn in demand. 

The U.S. headquartered automotive seating, electrical and electronic systems supplier has posted total sales of US$5.2 billion in the first quarter of 2019, compared with US$5.7 billion in the same quarter of the previous year. 

The increase of prices observed over the previous two rounds all but disappeared in the auctions held in the country across the end of April and early May. The downturn hit the bull/heifer type of hides the most, erasing all the previous gains. Cowhides also lost some ground, but in a more measured fashion.

Total hide and skin exports from Brazil declined 25.4% in April, year-on-year, to US$102.2 million. April exports were also 14.1% lower than the previous month of March, when it totalled US$119 million, according to data released by the Centre for the Brazilian Tanning Industry (CICB).