Bulletin

Over the past few months we have witnessed more of the world supply of cowhides being sent straight to landfill, or sold to tanneries at below economic values; presumably these abattoirs are baring the cost of selling below base levels rather than dump hides.

The furniture upholstery tanneries within China continue to struggle. There is reported to be enough orders being placed to keep most tanneries running at about 80 percent capacity, but the margins on leather are expressed as very tight.

Geographically Italian tanners have traditionally been the best place for German suppliers and abattoir groups to sell their hides.

All abattoir prices have again remained unchanged, there has been very little change in prices now for many months. This has enabled traders and suppliers to feel safer about looking further into future for sales.

With good volumes of sales previously made, sellers were able to be a little bolder with their selling last week.

For week 44 of 2019, the CICB price indicator for green hides has shown no movement, when compared to the previous week.

More salted hides than of late seem to be available from South America, offers from Argentina, Brazil and Uruguay were sent to customers last week, these offers were along with the usual ones of wet-blue material.

Hide trading in the Netherlands continues to be difficult, although it is expected that the slaughter rates will decline in November and December; which will help matters, as less material available will create some stability. 

Those tanners that have been buying on a consistent basis, are mainly those working shoe upper and the higher end of the quality range. 

Many calfskin orders were placed before the summer tannery shut-downs, the first of these orders are now starting to be completed.