Bulletin

According to preliminary estimates, the Ukrainian tanning industry’s total revenues for 2019 amounted to US$55 million. Only about 20 tanneries are left in the country with a workforce close to 2,000 employees. 

As we enter the new year, the prices appear to be steady across the board. A few sales were reported last week, but the bulk of the activity will resume during this week with well populated offer lists reportedly already hitting the desks of Asian buyers. 

The market for both upholstery and shoe upper leather is reported as being in good shape over the past two months. 

The market mood for bovine hides in 2019 is reported as ending on a more positive note than it started. During the first half of the year demand was weak. 

The New Zealand pickling industry is reported by one commentator as about to see some major changes in the coming months, with some of the major players contemplating important structural changes.

Information given to theSauerReport from both Italian and Chinese tanners show that there is good interest in wet-blue from Brazil. The interest seems particularly good from Chinese tanners. 

The Italian split market continues to suffer, due to a number of challenges within the industry: The price of low grade hides is actually cheaper than the split price, good demand and price from the gelatine/collagen market and the cost of splits remain too high to generate more demand from the finished leather market; for all of these reasons, the demand for split material, for medium/good quality finished leather will remain low for some time going forward. 

With European tanners seemingly unable or unwilling to pay the current asking prices for cowhides, all attention for these has been switched to the Far East. 

Following their colleagues from other origins, German traders have moved their asking prices marginally higher, up €c5-10/kg from the previous levels. Not everyone, however, has felt confident enough to apply changes across the board. 

The stand-off between farmers and abattoir owners that caused the strikes and slaughter disruptions during September, appear to be back on the agenda.