Market Report 06.02.2026

What happened this week

Another week that was largely uneventful. Markets in Asia are preparing for their New Year celebrations and the extended break. There was still some interest, but it also became clear very quickly that buyers were only willing to make purchasing decisions for raw material if prices had been lower still. So it remains the case that we are essentially dealing with a pure price-driven buyers’ market, and interest is not truly driven by immediate demand for raw material. As is so often the case in commodity-based supply chains, an expectation spiral builds up once a trend has been established. At the moment, this essentially means that seller optimism has been replaced by buyer optimism—an experience we have not only had recently. The perception has become entrenched that raw material is available in abundance and that, ultimately, the buyer has the final say in negotiations. While there may still be room for discussion on higher-priced items, the situation looks different for the lower-priced hides worldwide—and therefore also for ours. As much as the market had been stabilised by the influence of the collagen sector, fresh pressure is now building again. At present, this is only being offset by slightly lower slaughter numbers. The upcoming trade fairs and the Carnival interruption in Europe also play a role. Everyone is hoping that next week’s fair in Milan will provide specific insights into demand over the coming months. This may well apply to leather goods and possibly to fashion shoes and apparel; however, these do not represent the most significant share of overall leather demand. A genuine turnaround can only be expected once leather regains traction as a material in mid- and lower-priced consumer goods. In Europe, the key concern remains automotive leather production. Even if the closure that was reported affected only the cutting and sewing of automotive leather, it is still a symbol of continuing shrinking demand. The European automotive sector offered almost exclusively negative news this week in any case. For us, business in the Far East and in Europe was again very quiet and limited to isolated opportunities. Despite substantial price pressure, the Indian subcontinent remains the market that currently provides the only real sign of demand for raw material. Logistics and pricing, however, are a major challenge and ultimately prevent many of the outcomes one would hope for.