Market Report 09.01.2026

What happened this week

The start of 2026 remained very quiet, even during the first full calendar week. In many parts of Europe, Tuesday was still a public holiday, meaning that full market activity was neither expected nor observed.
As a result, the most significant development of the week was not operational market activity but today’s news that one of Austria’s most well-known tanneries has filed for insolvency. While market rumours had long speculated about a potential shutdown of production, a full-scale insolvency nevertheless comes as a surprise. However, upon closer examination of the limited but available and known data, this step appears less unexpected. Based on current information, it is likely that this insolvency will have implications extending beyond the immediate case.
From a commercial perspective, activity remains largely confined to the Indian subcontinent and Asia. However, it must be noted that price expectations for new leather orders imply raw material price levels that are simply not achievable under current market conditions. A further correction of prices at German slaughterhouses would open up new room for negotiations. This process will take time, although the insolvency in Austria may ultimately act as a final trigger for such an adjustment.
A price correction has been overdue for some time in order to allow European—and particularly German—hides to realign with the international price matrix. In addition, the previously strong demand for bovine hides for collagen production in Europe has weakened noticeably. Increasing volumes of foreign material are entering the market, placing additional pressure on margins and calculations. At current slaughterhouse price levels, larger deliveries at the newly proposed prices are hardly feasible. Here again, the market will ultimately have to find a new equilibrium.
However, the fixed costs associated with the collection, processing, and transportation of hides remain unavoidable. These cost components must be covered in any case or, alternatively, the resulting gap would need to be absorbed by other means, such as disposal fees.
Overall business volume therefore remained relatively low during the week and was limited to a small number of individual transactions, primarily concluded overseas. Demand from overseas continues to focus on material for shoe leather production, with purchases made selectively and strictly according to specific requirements. Price movements remained minimal again this week, largely due to the lack of significant transactions that could provide reliable market references.