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Automotive leather requirements decline

Published: 27 Apr, 2022

The stop/start production within Europe and the U.S. due to component shortages, along with Chinese automotive production problems because of lockdown measures, is the reason for the slowdown in upholstery leather demand. This puts prices of both bull hides and certain selections of cowhides under pressure. It is reported that, even if the world automotive production returned to normal next week, then there is enough finished leather already available for several months. 

Adding to the woes of the automotive market is the spending power of the consumer, all have been hit hard in the pocket by the latest energy and fuel rises, along with increased taxation in many countries – something must pay for the lockdown period – with a reduced amount to spend, there are reports of order cancellations for vehicles across much of Europe. Again, this puts further pressure on the requirements for hides suitable in this segment. The saving grace in many countries is the continued below normal level of cattle slaughter, which is helping to add some balance to the market and protect prices to a degree.

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