Friday, 08.10.2021
Market Report

The US $ in EURO

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.

Type 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 € 1,20

  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 1,10

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0,95


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 € 1,20
  30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 1,50
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1,45
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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