More interest in European cowhides from the Far East
Published: 08 Jan, 2020
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. Chinese tanners continue to show good demand for the better quality / origin hides, and as a result, the recent sales have shown an upturn in the price by around US$2.00/hide for most origins. As recently as the start of December tanners in China where indicating that the gelatine and lime drop split market was saturated, with prices for both starting to fall back. It was expected this would temper the cowhide market as a result, but this does not appear to have been the case. With suppliers in some origins reporting to be in a forward sold position on cowhides that will take them to almost the start of the Chinese New Year period to fulfil. Tanners still need to work with their finished goods suppliers over how they will share the new tariff costs. The Chinese economy is still very buoyant compared with most nations, but there is a continued slowing of consumer spending. The increase in food is a factor behind this, with pork alone increasing in price by over 100 per cent during 2019, due to reliance upon imported pork following the African swine flu outbreak. 2020 is set to break all previous records with the amount of pork and beef being imported.
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