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Bulletin

United States – hide prices continue to fall

Published: 27 Apr, 2022

Recent reports suggest more interest from Chinese tanners than for the past few weeks. Having more tanners bidding on hides comes as a welcome relief, however, it does indicate than some tanners who were outside of the lockdown zones had been waiting for the market to fall before dipping their toe back into the water. It was always suspected that tanners would take advantage of the situation, and who can blame them. Suppliers from the U.S. are reluctant to allow a continuation of the recent price declines, but with such a large number of hides to sell each week they are at the mercy of market forces.

One of the major problems that suppliers now face is that if prices continue to drop it runs the risk of undermining existing contracts, many of which are delayed because of slow shipping schedules, something that has been exacerbated by the port loading/unloading problems in China.

Wet-blue suppliers are reported to now be having a tough time after what can only be described as a boom time, where anything and everything was snapped up, now only the split selections carry a strong demand. Full substance hides are down by around US$2.00/hide over the past ten days. This slowing comes at a time when rising energy and chemical costs are hitting this section of the leather tanning industry hard.

Recent rainfalls in areas that had been hard hit by drought are reported to be easing the concerns of farmers, with the prospect of less pressure on sending cattle to market early, especially if further rains follow.

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