Market Report 01.08.2025

What happened this week

We can’t remember a summer with so little activity. This is certainly due in large part to the fact that the market in China is still closed to us, but that is really only part of the current situation. As already noted several times in previous issues, the European tanners have now finally gone on their summer holidays and it remains the case that it can almost be seen as an escape to simply not have to deal with the business for a few weeks. Of course, this will not apply to everyone, but for most the problem of insufficient orders remains acute and no solution is really on the horizon for the coming months. The latest news from the European automotive industry may not have been a surprise, but it was no cause for hope either. The situation was similar for most of the major leather goods brands, which, with very few exceptions, were unable to report satisfying sales. These are all just the companies that have to publish their business performance. For the others, the real situation remains hidden, at least for those who do not have direct access without a direct business relationship. One thing can probably be said without much exaggeration: There are not many positive voices to be found at the moment. What consequences this will have and how things will continue for the rest of the year after the holidays will probably only become clearer in the course of September. As this is the case, there is no really significant information to provide at the moment. The necessary orders and deliveries have been agreed in the last few weeks without planning more than the bare essentials for the restart after the holidays. Everywhere, however, it can only be described as a basic supply. However, due to the low level of slaughtering, it is not particularly significant at the moment. Even without being able to export directly to China at the moment, the markets in Asia are as well not showing any particular activity at the moment. High-quality hides are being sought, but the price expectations of interested buyers simply cannot be realised. In the case of standard types, if at all, it’s all about the price and even there, people are really only looking for exceptional ’special offers‘. In this environment, one should actually assume that this would exert further and additional pressure on prices. However, this is not the case at the moment, so the reduced activities are dragging on more or less unchanged.