Osterhorn, Friday, 11.11.2022
The US $ in EURO 1,0300

What happened this week

This week finally showed a clear market movement again with sufficient activity to derive certain conclusions and a basis for price development. On the one hand, it became very clear during the week that many tanneries in Europe have already significantly reduced their production and, if necessary, will either plan further restrictions until the beginning of the new year, or end the year at the low level. This has so far been partly offset by the reduced kill and on the other hand by activities of traders and producers of semi-finished products, so that it had not yet come to the expected price pressure for raw material. On the other hand, inventories in the tanneries are beginning to increase steadily and it is becoming also clearer by the day that hopes for the usual and seasonal recovery in leather demand may be dashed this winter. So far, many problems have still been masked by the rather good business in better ranges and the significantly improved revenues for lime split. Both effects have meant that the tanneries have mostly been able to cope with the strain on liquidity over the past six months without any problems, but in the meantime there are no signs of improved demand for the medium and lower ranges of leather. It can therefore be assumed that a further increase in inventories in these ranges will hardly be avoided in the coming months. For this reason, the opportunity of the Christmas break will be used and, in addition, an already reduced soaking level