Market Report 05.09.2025

What happened this week

This week, all eyes were on the trade fair in Shanghai. As is so often the case, opinions on the results and impressions differ, and this time perhaps even more than usual. What no one can dispute is the fact that the number of international visitors and exhibitors was significantly lower. A very “creative” arrangement of the stands gave the impression of a higher visitor density, but anyone who looked closely could quickly see that, apart from a few short peak times, the number of visitors was also lower than in the past. It must also be said that the number of stands from the leather industry was also rather disappointing, and that in addition to machinery and chemicals, more and more exhibitors from non-leather sectors are completing the fair. Some colleagues visited customers in China before the fair, and even with fewer visitors, there is always plenty to talk about. As already mentioned, opinions on market developments vary greatly. It is undisputed that there were a large number of enquiries on all days and, at the same time, a very pleasing number of bids. However, customers‘ price expectations are always USD 2-3.00 below the calculated possible levels. Nevertheless, some European suppliers claimed larger sales volumes for themselves, although one can only speculate about the actual and real prices concluded. For us, it was relatively simple: if we did not accept the bids and made counter-offers, we were met with silence. The bottom line was that we ended up with only a few deals for cows. In the end, little changed in the situation. When purchases are made, the price is determined more by the split returns than by the demand for leather. In China, too, there are more than enough stocks of semi-finished goods, so that more is being bought and produced to keep people employed than to meet genuine demand for products made from leather. Otherwise, the general discussions in China did not give the impression that consumer sentiment would improve in the short term. The weakness of the property market cannot yet be offset by the positive development of the stock market, and people are now waiting for further measures from the government. In addition, leather in China must also continue to fight for its place as a material in the market. All in all, we agree with those who did not take away any impetus for demand and price improvement in the near future from Shanghai.