China – not sharing the U.S. view of the market
Published: 10 Jul, 2019
Very few Chinese tanners seem to share the same view of the market as U.S. traders. There have been reports from the U.S. that some selections of steers have increased in price over the past week. Chinese tanners seem to view this as bravado and see no justification for this. There has been no improvement in finished leather prices nor demand. Added to this, many tanners openly state that they have plenty of raw stocks in their warehouses to process.
Cowhides seem to be unwanted at any price levels. There is reported to be historically low demand for finished leather from this article, and until this situation changes then the raw price will remain under pressure.
Many Brazilian wet-blue traders are said to have taken out leases on warehouses in China. This is so tanners can select their hides from these warehouses and avoid any delays, between purchasing and receiving the goods. While this is a good business model for the Chinese tanners it does show how far the market has fallen, that suppliers require to add this cost to their material.
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