Brazil – Where is the bottom of the market for hide prices?
Published: 12 Jun, 2019
The CICB indicator for the average green price of hides has fallen in week 23 of 2019 from BRL0.93/kg to BRL0.88/kg. For the past two weeks prices remained unchanged, in part due to falling export prices being offset by the fall in the Brazilian currency. Now for week 23 we see the true market picture emerging. Chinese and Italian tanners have plenty of wet-blue hides in stock and prefer to process their own raw hides to tanned rather than buy in wet-blue from Brazil, in the quantities they have in past months. One Brazilian commentator expects prices to continue to fall until they are viewed as a bargain by tanners, the question remains as to where this bargain level will be found. To get daily updates on the latest raw materials prices subscribe to theSauerReport by clicking here.