Bulletin

There is a feeling among suppliers from various parts of the world that the bottom of the price market for hides may have been found or is very close. The volumes purchased in recent weeks by Chinese tanners would certainly follow this thought process, but there are also those that think tanners are only buying now to avoid the Winter type hides from the Northern hemisphere.

There is the general feeling that, following further downward price corrections, the bottom of the market may have been found. Oxheifer hides can freely be sold and delivered to Italy, and there is reported to be plenty of interest from Italian tanners at the latest price level. 

Prices are being reported as stable at this moment, leading one commenter to remark that this must be seen as a positive thing considering the uncertain times we are operating in.

While promoting electric cars and how good for the environment they are, manufacturers also want to push the idea that every type of material used within these vehicles is “perfect”. If you read some of the advertising, you could be fooled into thinking you are saving the planet by buying one.

One commenter reports that they find it difficult to get a clear idea of the direction of the market as we head into 2022. It is known that the automotive industry will not recover to full capacity for some time yet (latest predictions are not until 2023).

The Greek market has been described by one commenter as bullish. Slaughter production has increased, for both skins and hides in the run up to the Christmas season. When compared to previous months, instead of easing, the prices have increased, especially for lambskins and sheepskins. Bovine hides have stopped their downward price trend and have kept stable.

Towards the end of last week (Dec 10) and into early this week (Dec 13), price concessions were given on many selections to keep the flow of hides moving. It was thought that this would be enough for this week and, at the new prices, business could be done.

There has been a slight easing on the price for the very top weight bull hides, from both the North and South of the country, this was expected to happen given not only the time of the year, but the very nature of the type of leather that is in most demand. Most suppliers had already mentally factored in a small price correction, and so there were no surprises.

A cloud of uncertainty hangs over the finished leather market, according to one tannery group, although so far this has not put the brakes on hide buying. Good volumes of hides continue to be purchased from the U.S., which has a large slaughter figure to sell weekly, and there are also more hides being offered with each passing week from European suppliers.

There are reports of increases in the price that can be achieved for cowhides from several origins when selling to Chinese tanners. Suppliers from the UK, Ireland, France and Germany all report that demand is higher. Favourable exchange rates against a strengthening U.S. dollar have also helped the bottom line for many. It would appear that the better the quality, the easier it is to sell, with lighter cowhides in not such great demand.