| What
happened this week:
The
past week offered no shortage of
information and changes about which the
industry suddenly had to think are very
hard. Almost daily, the media reported
further production cuts in the
automotive industry within the next few
weeks
and in some cases already until the end
of the year. Not every car is equipped
with leather and therefore it always
needs a closer look to what extent this
affects the supply chain for automotive
leather. However, it is indisputable
that in the first half of the year more
expensive, well-equipped cars were
produced rather than cheaper ones and
therefore less leather-equipped cars. At
the moment, this situation is clogging
up many supply chains and even if
'postponed
is not cancelled', a reduction in the
production of automotive leather is to
be
expected in the coming months. This of
course coincides with the peak
slaughtering of heavy male stock in
Europe and all parties involved need to
think
about how they will manage this phase.
Tanners should remember that last year
too the future looked very uncertain and
prices were at rock bottom. Butchers
should be aware that the
exaggerated price |
development this year also has no
solid basis. In a perfect world, this
would lead to an understanding
discussion about volumes and prices for
the coming months, so that both sides
can meet the
parameters that are that
energy-intensive industries with
comparatively little economic
significance
find little support. In addition, the
leather order situation is below
expectations for this season. In
addition, European hides are not very
competitive in terms of price and thus
sales and interest from China remained
rather weak. However, it can basically
be said that the question at the moment
is not so much about price, but rather
about weighing up the risks and
opportunities for leather sales in the
winter season. It is important to bear
in mind that we have already reached the
beginning of October and therefore
most of the planning for material and
quantities for the coming months should
actually already have been completed. It
would therefore be expected that the
interest in raw material should be
greater than what can be seen at the
moment.
Sales within the week were rather
sluggish. In Europe, this is mainly due
to
the fact that they first want to wait
for the development
|
of
prices at the
slaughterhouses for October. In
Asia, European prices are not
attracting volume
buyers at the moment. This leaves
only the specialists who, for
variousreasons, prefer European
goods for their production. Prices
for the few trades
did not change much and if they did,
they had to be adjusted downwards, which
in the case of Asia was mitigated a
little by the firmer dollar. The
Kill:
Slaughterings increased
slightly again this
week. However, farmers are
increasingly busy with the harvest
and the
constantly rising prices for live
cattle also ensure that there is no
hurry to
sell. The next weeks and months will
show whether this is a smart idea,
because
meat sales are still not
exhilarating. The massive drop in
prices for pigs will
not cause beef prices to go sky-high.
What
do we expect:
We
think the market
correction is not yet already over.
The next step will be taken with the
new prices for October, and it is
actually not so much a question of
if, but
only how much, and there - as so
often - opinions differ widely. It
is actually
not too difficult at the moment to
place the situation and prices in an
international context. As is well
known, you can delay price
developments, but
you cannot prevent them.
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