Market Report 13.03.2026

What happened this week

The two dominant events of the week were the new war in the Middle East and the APLF Fair in Hong Kong. It is debatable which had a greater influence on trade during the week. Several people were unable to attend the show because they had booked flights from or via the war zone. Others decided not to come because alternative flights were too expensive, or because they felt it would no longer be appropriate to fly. The end of Ramadan may also have impacted potential visitors and possibly the number of exhibitors. Arriving in Hong Kong and at the show triggered a certain disappointment in our case at least. As with several famous leather shows in the past, the downward trend of the Hong Kong event was clearly visible. Just one floor, not even fully used, was enough to host all the exhibitors from all sectors. Consequently, the function of the exhibition as a place for visitors to discover new products and inspiration was pretty limited. In contrast, the number of visitors seemed somewhat better. At least in the covered space, the aisles had been well filled, which, in our opinion, means that the location was attractive enough to travel to, and offered the opportunity to meet and greet, as well as the chance to gossip and gain more insight into the situation. Disappointingly, there was little Chinese attendance. The number of exhibitors, agents and visitors was nowhere near what one was used to. As far as business was concerned, the first days were a waste because the agents had obviously been instructed by buyers to first get a feel for what the latest global developments meant for sellers‘ intentions, emotions and mood. At best, the low bids seen over the past few weeks were repeated, and met with the same resistance as before. We realised that our colleagues had adopted an even more optimistic approach, reflected in their ambitious asking prices. We don’t know how successful they were during the show, but by lunchtime on day two, we had secured some sales of cows at prices that were still below our asking prices from the previous week. At least, however, our offers were accepted after many long phone conversations between the agents and their customers. Combined with the firming USD and the additional freight charges due to fuel surcharges, the outcome was not ideal, but better than it had been since Chinese New Year. The second event — the second, bigger war — was far less prominent in discussions than one might have expected. The shock that religion and politics can eventually trigger, and the rising concern that this could be another step towards dragging the world into war, could be felt everywhere. This, combined with the justified concern that it might not end as quickly as some of the combatants claim, could be felt everywhere. So, it was nice to see old friends from other parts of the world again, to reflect and exchange ideas and opinions. Without the war, the mood could have been more optimistic for the leather business, and bringing a few sales home is possibly better than what people staying at home might have expected.