Osterhorn, Friday, 02.12.2022
The US $ in EURO 1,0475

What happened this week

Christmas and the end of the year are fast approaching. In many countries (not in Germany anymore), football is currently dominating the daily routine, which makes planning even more difficult at this time of year and in some respects. However, in many factories, production is probably no longer large and significant until the end of the year, so coordination is a major problem. In Europe, the business and delivery planning for 2022 is largely completed and before the Christmas holidays, only the talks for January have to be held. In China, all eyes are now on the government’s pandemic policy. After the protests, there is hope that the government will allow some easing and that production can be better planned again. In any case, it was already noticeable this week that customers in China are again looking at European hides because – similar to Europe – they only see prospects in the production of leather with a higher added value. Those who immediately see potential for a stabilisation of prices for European hides should take a look at the foreign exchange market and the current demand for leather. The USD has lost almost 10% compared to the highs of a few weeks ago and leather demand does not yet provide any indications for an improvement. In any case, the competitiveness of European raw material is falling equally with every cent the USD