Market Report 03.10.2025

What happened this week

All in all, it has been a quiet week. This was partly due to the fact that today’s public holiday meant a long weekend was ahead and the long holiday week in Asia began on Thursday. However, the final assessment of the trade fair in Milan and the upcoming negotiations at the slaughterhouses probably played a decisive role in the situation here. Until a clear picture of the market situation has been established, until a feel for the behaviour of competitors has been gained and, of course, until an understanding of customer needs has been obtained, no one is likely to make any firm commitments to new business. That is probably why the term “wait and see” is the only appropriate description for the course of this week. Some may be guided by the upturn in business in recent weeks and the impressive volume of sales in the USA. The shortage of split leather certainly also plays an important role, even if it would of course be paradoxical if split leather were to determine or strongly influence the hide market. Actually, the tail does not wag the dog. However, the valuation of split leather and the various grain selections, as well as leather in general, has long since reached a new dimension that no longer reflects the old, classic patterns and rules of production. In the past, when tanners reacted quickly, creatively and actively to shifts, products adapted more quickly and flexibly. Now, large parts of the leather industry have become passive production slaves to customers and audits, and thus “wish fulfilers” for organisations, buyers and designers, as well as their rules. Leather manufacturing expertise and the proactive, value-oriented utilisation of all its results used to be at the heart of the industry and is now one of its biggest problems. However, there is hope that these shackles can be broken, although this will require closer and more flexible cooperation within the chain. We have little to report in terms of sales this week. Without a clear direction for slaughterhouse prices, without clarity on the development of slaughter numbers, and without more reliable information on leather orders in particular in Europe, all that remains is to wait cautiously, both for more clarity here and to see whether the Asians want to continue filling their pipeline for the winter season. Overall, we see fewer problems with cheap hides than a continuing need for adjustment with the more expensive ones. It will be interesting to see what new solutions can be found to resolve the shifts in demand for leather.