Germany – looking for direction
Published: 15 May, 2020
It remains unclear which direction the leather market will take, the rock-bottom price of hides continues to be the main driver behind the purchase decision of buyers. As such, a great deal of the many enquiries reportedly circulating could be tied to speculation, to try to take advantage of the current low prices. There is, in fact, a great variety of players in the market at the moment, along the leather value chain. From financially sound, who can take advantage of the emerging good deals, to the cash-strapped, who need to sell at any cost. From those who dare to invest, to those who prefer to wait for more clarity, before committing to any deal.
In this climate, the first week after the lock-down in Italy was reportedly concluded with a number of trial-orders; small volumes of material not usually purchased by some customers to sample the hide, mostly driven, again, by their attractive prices. In general, the prices circulating were still those prevalent for the last 1-2 months, and demand for the better grades and lime splits is seen as stabilising.
Bovine slaughters are said to have shrunk by 20% in recent weeks, due to the well-known problems of both demand, especially for the better cuts, throughput, due to the closure of some slaughterhouses, including large ones, because of the Covid-19. To read more click here.