Germany – Hide prices flatlining
Published: 09 Oct, 2020
A flat but firm week best describes last week’s activity within Germany. There have been no reported price movements, either up, nor down. In recent times, there has been an upward trend in prices, but the amount tanners can currently pay seems to have hit the ceiling. From a trading stand point, a stable market is the best one, on which a longer view can be taken. But, even then the question is: How long is a longer view, in the current climate? The finished leather market is only being propped up by the Chinese domestic upholstery leather demand, not until this starts to spread to other parts of the world, and to other sectors of the finished leather industry, such as shoes and leather goods, can a recovery of any shape or form be called. Slaughter numbers for Germany remain steady, but still below the seasonal norm. As the weather starts to change to colder times, then we may see farmers more inclined to send more cattle to slaughter. Colder months may drive beef consumption up further, which again may induce farmers’ opinion of what to do. Italian tanners are working less hides than would normally be expected. With the recent Covid situations within Europe, this is fully understandable. Most are carrying less inventory, preferring to work more hand-to-mouth than to tie up cash flow by holding stock. Many fresh or chilled hides go straight into Italian tanners from German suppliers, as is well known, but these are tough times for tanners in Europe, who see hides prices being driven up by their Chinese counterparts, who themselves are fearful about paying too high a price for hides, all the while worrying about the reduced supply. For more information click here.