United States – More selective offer lists
Published: 09 Oct, 2020
The price rises for hides that are more suitable for the upholstery business continued last week, while there was a levelling off on prices elsewhere. On October 1, the latest export hide sales were released for both cured and wet-blue material; there had been a sharp decline in the volume of sales made on both fronts. It was well known that after several high volume sales weeks, suppliers had held back on the number of hides made available on their offer lists, all the while increasing the prices of what was available. With most Chinese tanneries now closed until mid-week, it will be very interesting to see just what sort of volume sales were completed last week, or if the same plan of only releasing limited amounts of hides continued. One thing is for sure, the demand from Chinese tanners has certainly not diminished, as can be seen when looking at the sales volumes and prices made by Brazilian tanners and suppliers. A while back, tanners spoke about the US$30.00/hide being the ceiling price that could be paid. As a consequence, tanners looked for value in other hide selections, either as an alternative or as a way of averaging down their purchases. Today we find ourselves looking at a hide market that has tipped more towards the hands of the supplier, for maybe the first time in a number of years. The questions now are, can tanners continue to pay ever higher prices, and will the demand for finished leather continue domestically in China as we start to approach the colder months of the year? One thing that looks certain is that slaughter rates look set to remain low in most parts of the world, therefore meaning that hides will remain in shorter supply than normal - whether this will mean higher prices, however, remains unknown and higher prices may only be temporary. To read more click here.