Published: 08 Jan, 2020
The Italian split market continues to suffer, due to a number of challenges within the industry: The price of low grade hides is actually cheaper than the split price, good demand and price from the gelatine/collagen market and the cost of splits remain too high to generate more demand from the finished leather market; for all of these reasons, the demand for split material, for medium/good quality finished leather will remain low for some time going forward. The demand for low quality split material is reported as being almost at zero levels. As an example, one split tanner explained that; from a New Zealand wet-blue grain ex 14/18kg, split for upholstery gives a return of €3.00/sq m, but on the other side of the same hide you get €6.00/sq m (grade A, trimmed and shaved). To make the splits more attractive and to start to gain some market share, the price gap between the grain and the split has to be reduced, before finally being reversed as has always been the norm.
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