Friday, 05.11.2021
Market Report

The US $ in EURO

What happened this week:Price, as we know, is one side of the coin and demand for material is the other. In Central Europe, the problem is now developing that for certain hide types, and here we are essentially talking about the heavy male goods for the automotive industry, there is currently not enough demand for the entire supply. There are various reasons for this, which have already been sufficiently discussed. The fact as such would not actually be so remarkable if it did not become increasingly apparent that many slaughterhouses and suppliers did not see the situation coming. This remains remarkable in view of the many available facts that had already existed for months. In the course of the week it was confirmed more and more that there are many producers who are desperately trying to sell their production fresh and chilled. This is difficult because it gives the impression that most tanners have already more than adequately covered their needs for the next few weeks. So, what often happens is that all sorts of sensible and senseless prices are passed around without triggering any change in the balance between supply and demand. The real problem, however, lies in two areas. First, there will be little change in the oversupply over the next few weeks simply because of the higher kill figures. Question: What is done with the material? There are not very many options. First, you could salt the product and store it until the situation eases. Secondly, one can tan the goods and  wait, or look for other and new customers with them. Thirdly, one can lower the prices so much that the goods become attractive again in other markets. The last option does not seem to be one. It is also not particularly inviting for two reasons. Firstly, many producers would have to accept considerable losses in revenue and secondly, there is of course the question of the future and thus whether the raw material would not be needed at some point in 2022 and then - as has already happened several times in the past - flowed off in another direction and thus no longer be available. These are certainly the decisions that are being intensively discussed today both in the slaughter industry and in the leather industry. The problem, which we have often pointed out in the past, is above all that the prices for this product had moved too far away from the market realities in the second quarter and that the correction must now be all the more painful. For the other hide types, especially cows, there is also noticeable market pressure, but it is much less because prices for these types have not risen so much and demand has not collapsed so  much due
to the more stable furniture leather business. Sales in the current week were rather sporadic. Quite a number of emails were  received from Asia asking for offers, but in the end the bid prices were much too far away to be acceptable. The main interest was in low grades and other items that were at least visually inexpensive. The overall volume of sales this week was well below average. The focus is now on the price negotiations with the slaughterhouses, because they will decide to what extent our goods will be competitive at all in the next few weeks.
The Kill: Slaughterings continued to rise this week. Due to the high cattle prices and the difficult calculation in the slaughterhouses, as well as the lack of manpower, the productions were not at the level that one might have wished for and expected. Skin weights for females are increasing, while for males they are stagnant and certainly a little below average for this time of year.  What do we expect: The market continues to be in a discovery phase at the moment. The demand worldwide is not really large enough at the moment to absorb all the hides produced. This situation will certainly continue for a while and sales will therefore have to be geared to the competitiveness of prices compared to other origins and will determine the sales quantities in the future. .

pe Weight range Avg. green weight Salted weight Avg. weight salted Price per kg green weight
Ox/heifers 15/24,5 kg 22,0/23,5 kg 13/22 kg 20/21 kg € 1,10

  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 1,00

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0,90


25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0.85


30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0.80

Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 1,15
  30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 1,40
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1,40
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0.50
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0.55

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