China – Finished leather demand continues upwards
Published: 11 Nov, 2020
The domestic demand for finished leather continues, but there has been an increase in demand for leather goods from Europe, the U.S. and other parts of Asia. The problem now facing exporters, is that there is just not enough container space available. A knock on effect of the world slowing down has been the number of vessels that have been taken out of service, shipping lines preferring to run less, but full vessels; even if it means waiting longer at ports to load. In some cases exporters have had to delay orders because the situation has got so bad. The consequence has been that some tanners have asked that raw hide suppliers slow down their deliveries to the tanneries. With the world still in an economic slumber, then the shipping logistics will be something that will remain for some time, end consumers will just have to get used to having longer delivery times for larger goods. As tanneries look back over 2020, many have seen their fortunes turn around, they started the year with a full-lock down in many regions of China, with internal travel restrictions. However, since the early part of the summer, the economy has picked up along with consumer growth, aided initially by government incentives. Those in the leather industry now report being in a healthy position, albeit with a close eye being kept on raw material prices, and fingers crossed that the Western world returns to its previous buying patterns.
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