Friday, 12.11.2021
Market Report

The US $ in EURO

What happened this week: Slowly but surely, the end of the year is approaching and with it the need to plan delivery programmes during the interruption caused by the Christmas holidays and Chinese New Year. The field is of course particularly difficult this year because the productions of the slaughter industry and the leather industry do not harmonise very well at the moment. Normally at this time of year we have both higher slaughterings and overall higher production in the leather industry. Sometimes there have been problems in synchronising production, but overall the winter half-year tends to be an easier period than the summer half-year. This year is a bit different, because the decline in automotive leather production is not very compatible with the increase in available raw material. At the moment there is a lot of talk about how long and to what extent production will be interrupted in Europe due to the Christmas holidays. The holidays are actually very convenient this year, and probably under normal market conditions the interruption would have been rather short and for a week at most. This year the range is much wider and there is every variation on offer from one to three weeks. In the next few weeks the final decisions will probably be made. At the moment, people in Europe are more busy planning deliveries than concentrating on new sales. The first price corrections for November production have now been made at the slaughterhouses, but whether these will be sufficient will only become clear in the next few weeks. The leather industry has also been hit hard by the substantial increases of cost. Energy, chemicals and labour costs have increased or will increase significantly. At the moment, lower raw material prices are seen as a way out to mitigate the price increase for leather, and the market environment has made it possible to increase the pressure accordingly. The considerable price corrections since the summer have led to an increased willingness to restock among customers in Asia. This does not mean that there is any mercy in price negotiations, but at least at a certain price level there is a willingness to buy. The difficulty, however, is to balance this appropriately at the moment. After strong market movements, it is not uncommon that new theories about the future development quickly do the rounds and that is why opinions about the price development of the next months are once again far apart. This week's business
essentially depended on the extent to which one  was willing to come closer to the price expectations of the customers. There was definitely greater interest, especially from Asia. However, as always in a weaker market, the prices were clearly below our expectations. In the end, compromises could only be reached on the sub-varieties. In Europe, the rising Covid-19 figures caused additional uncertainty, as at the moment no one can say what effects and political decisions this will have. All in all, the pressure on the market remains and it will probably take a while before a general equilibrium is found again.The Kill: The kill has now settled at the expected high level. We are in the middle of November and this is now the time of the highest slaughtering in our region. Hide weights remain relatively high for females, while males remain below previous years. What do we expect From our point of view, the market is still in its finding phase. We continue to see a need for adjustment, especially for male products, while the pressure on female skins is at least temporarily somewhat lower. For the time being, however, the ability to deliver regularly remains more important than the price – at least for many and for the rest of the current year.

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 € 0,95

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0,80


25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0.75


30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0.70

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 € 1,35
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0.45
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0.55

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