Germany – Sales on a firmer footing
Published: 08 Jan, 2020
Following their colleagues from other origins, German traders have moved their asking prices marginally higher, up €c5-10/kg from the previous levels. Not everyone, however, has felt confident enough to apply changes across the board. Some decided so far to limit the price increase to cowhides and heifers, mostly as a result of the continued interest and recent good round of business towards China. As males still seem pricey compared with other origins, they have enjoyed much less traction from the Orient and their sales still much depend on the European market. High quality males from the South, on the other hand, had already seen their price slightly increased earlier in the season, on the back of good demand from Europe.
Whether these pricelist changes are being accepted by buyers, or whether to lock in a deal to the old prices, still remains unconfirmed. But it is widely recognised that the market is now on a firmer footing, and the lows reached by the end of last summer seem definitely behind us for the time being. Finally, with less than ten days to go before the Christmas break, the latest changes seem mostly aimed at any business taking place in January, rather than presently. European tanners are said to be wrapping up their businesses and being covered until next month, while talks continue with Asian buyers, as they dig-in their heels against any higher price. To read more click here.