Osterhorn, Friday, 30.12.2022
The US $ in EURO 1,0700

What happened this week

This week we were actually faced with the question of whether it was worth reporting at all. We can’t remember a year in the past where business activity worldwide was as far down as this year. This applies not only to production, but also to office and administrative activities. Apart from very isolated shipments, there was hardly any activity and certainly no serious interest in hides and skins. This is unusual, because in the past it was always the case that someone from the Middle or Far East was always looking for a bargain. This year, everyone seems to have adopted a wait-and-see attitude and no one was seriously ambitious in replenishing their raw material stocks. This certainly has to do with the situation in China, where all eyes are on the completely disorderly spread of the covid virus. It seems that after two agonising years of massive restriction, the Chinese government now wants to catch up with the rest of the world in a fast track. A very exciting experiment for sure, but the crucial question will be whether a certain herd immunity can actually be achieved within a few weeks or months and, above all, at what price. In any case, this is currently leading to the fact that with the early Chinese New Year in China, there is no great need for quick decisions. Some sellers who have perhaps been able to do a little more business in China in recent weeks should be reminded that in China a deal is only done when the money is in the account and outstanding shipments can quickly