RE070122a

Osterhorn, Friday, 27.01.2023
The US $ in EURO 1,0840

What happened this week

Another week is coming to an end and the markets continue to lack the necessary dynamism and activity. In China, the New Year is being used for an extended period of rest and recovery, probably also to readjust to the new, free conditions and living circumstances after three years of complete movement control. We know that it is relatively unlikely that they will return to the old restrictive pandemic policy, but whether and what has possibly changed in the minds of consumers in the last few years is not known at the moment. It is also possible that many things will change in Chinese society and economy. In our business, we at least come to terms with the idea that the demand for leather as a material will continue to decrease in various segments and that this will not only lead to shifts in demand, but also to the abolition of many certainties that have been valid for decades. Europe, in particular, seems to be reordering many things. Less demand for leather, less slaughtering and thus less production inevitably leads to shifts not only in the leather sector, but also in other fields. This has been quite evident for some time in the by-products of leather production. Raw materials for gelatine and collagen production are no longer assured in quantity and regular availability for the industries. Low hide prices therefore make it possible to divert according to demand and preferences, and a similar scenario has therefore formed as we already saw at the height of the corona pandemic in the summer of 2020. Fewer splits for leather production, the use of