Market Report 04.04.2025

What happened this week

It will come as no surprise to anyone that the sale of hides and skins has not been the main focus of interest this week. It is also fair to say that the general boredom that we have tended to report on in recent weeks did not continue with Wednesday’s events. Firstly, however, we should report on the general work routine. It looks like the animal by-products that were shipped before the outbreak of foot and mouth disease in Germany are now finding their way into China after all. Unfortunately, over the holidays at the end of the week, there has been no real final confirmation that the goods that have already arrived at the harbours in China have actually been cleared. Nevertheless, there is good hope that this will actually happen at the beginning of next week. For new shipments to China, there is still no new information on what the documentation for this should look like. However, we are expecting new news here too shortly. Otherwise, everyone was of course waiting for ‘Liberation Day’ on Wednesday and Mr Trump’s announcements on what tariffs the world can expect in the future. By now everyone has heard and read the decisions from Washington and apart from a few in the US government, everyone is now wondering who has now been liberated. The first countermeasures were also published this afternoon and the 34% tariffs that China wants to impose on all products from America are of course of particular importance for our business. Everyone is still puzzling and calculating what impact the possible tariffs, which are to be imposed in the USA from 9 April and by other countries in the following days, will have on calculations, on the processing of existing contracts and on future business. A very complex issue and there are still many who expect some still changes and exceptions to be published before 9 April. Anyone who has seen announcements live and in full should not be too optimistic, but with the current administration in America, you never know. If the tariffs remain as they have now been announced, then prices and revenues will shift considerably for many exporting and importing countries. Let’s be honest, as bad as the tariffs may be, it is slightly supportive for pricing of hides in Europe. Where we compete with American goods, the competitive situation for the remaining business has improved somewhat. However, this also means that many countries exporting leather products will face major challenges. Under these conditions, it is not particularly surprising that business was once again very quiet this week. However, we were pleased to note that the first interested parties from China have already expressed an interest in European hides again under the new conditions. However, we first have to be certain that it is possible to import our goods to China again without any problems and for this we need clarity about the documentation.