Lower prices to come?
Published: 27 Apr, 2022
All the signs at present point towards further downward price corrections within the hide trade, at least for the short term. Chinese tanners are reported to be showing more interest in buying U.S. hides again in mid/late April, but these appear to be just baby steps after a period of almost three weeks where many tanners reduced their buying or were forced to close. The Chinese economy is slowing and even the official forecasts coming out of China are showing a slow-down, and these are reported as often over hyped. The latest strict lockdown measures in Shanghai and other major cities have worried consumers who, have stopped buying, even online.
European hides have seemed overpriced for many months with freight charges and logistics keeping them free from the outside market. But now with U.S. suppliers needing to keep the sales volumes up, many are offering at attractive low prices to Italian tanners, even with freight included they still are below many current European levels. German suppliers this week reported that prices were being viewed for now as stand on, but the expectation is that prices must come back.
All this uncertainty makes tanners in any part of the world uneasy, what they don’t want to do is buy now only to see prices come back and feel they have shown their hand too soon. So, for now it is a case of which tanner is going to put their head above the parapet first, especially at a time when slaughter numbers are starting to slowly increase and cattle prices in Europe at least are beginning to ease, making slaughterhouses more market competitive.
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