Market Report 27.03.2026

What happened this week

There is probably little point in deluding ourselves in the current situation. What was seen for so many years as a dynamic raw materials market no longer exists in this form for cattle hides today; they are now merely a by-product of the meat industry. Business and supply relationships, or supply chains, have largely become static, and essentially, the focus is now solely on managing what already exists. What used to drive the enthusiasm and dynamism – the creativity and ability to react quickly, to produce new and different things, and to constantly assess and utilise and large choice of raw materials for their suitability and cost-effectiveness – has either already completely disappeared from the industrial production of leather or is well on the way to doing so. For raw material suppliers, wherever they may be in the world, this means that they are either a secure part of a specific supply chain or they are not. Active dialogue regarding raw materials and their suitability for use is increasingly disappearing, with the obvious exception that there are the well-known niches and specialities that can successfully evade this situation. Consequently, it is still the major shifts in supply and demand that determine market activity and prices, which has led that the high frequency of price changes under these conditions are no longer being present at the moment. This week, too, was once again characterised by these conditions. Ongoing supply relationships are being maintained, and there is relatively little change in prices and volumes. The general mood is, of course, influenced on an almost daily basis by events surrounding the war in the Gulf region, and the resulting rise in energy costs is slowly beginning to cast its shadow over the market. Wherever transport plays a role in any form, in or outbound, the costs must now be taken into account to a considerable extent. What was still hoped for at the start of the war – namely that it would be nothing more than a short-lived disturbance – has unfortunately not come to pass, and despite all the messages being put out by the American President, we are slowly having to come to terms with the idea of long-term consequences. It is likely that even a short-term end to the hostilities will not, in the long run, lead to energy prices falling very quickly and sustainably. The destruction of infrastructure continues to increase every day, and the uncertainty regarding further conflicts is certainly not diminishing. This situation will then lead to far-reaching changes, starting with consumers having less disposable income. Countries reliant on energy imports thus face different problems than those with their own energy supplies. Despite all these reservations, business continues as usual every day, which also means that the sale of raw materials and the production of leather are not coming to a standstill. Things may simply not be changing. Business this week was again characterised by the management of existing long-term supply contracts, supplemented by isolated, rather random sales to Asia. The trend across all markets to try and secure higher-quality raw hides at favourable prices remains. Consequently, interest and sales this week are again focused on the better quality hides, whilst the poorer quality and lighter hides are attracting little interest. A certain factor, at least in Europe, is the waning momentum in the split market for protein production, which is playing an increasing role.