| What
happened this week: And already
another week has passed. The more the
year draws to a close, the faster time
passes. The end of the year may still
seem a long way off to some, but for our
industry it is already time to think
about the Christmas break and the
Chinese New Year that follows. Delivery
plans have to be made and in the case of
exports to China, the window of
opportunity to ship the goods is closing
faster and faster. Due to the long
transit times and the expected early
closures, only a few weeks remain in
which the goods can be shipped. One must
also take into account the Olympic Games
in Beijing, because the government will
not take into account the production in
the surrounding provinces when it comes
to the question of air quality and
energy supply. Our markets are
increasingly dominated by factors other
than the production of raw material and
the demand for finished leather. Even
though we have already mentioned many
times, the correct analysis of the
transport problems, as well as a lucky
hand in assessing the special influences
like the lack of components, energy
supply in China and the further
development of the corona epidemic are
much more important today than the
question of how many hides there are and
how many the tanneries want to buy. At
the moment, these external parameters
determine the situation |
such an extent
that there is no longer any real control
of the supply and demand situation. In
fact, this leads to suppliers losing
more and more control over the business
and their decision. Price alone is no
longer the determining factor. In
Europe, people are now looking
particularly at the situation in the
automotive industry. Some automotive
leather tanners have already reduced
their production significantly in order
not to let their stocks grow
uncontrollably. The same is already
happening in other regions around the
world. The constant flow of products in
the automotive chain has always provided
the basic security of sales in recent
years. This is now lacking and wherever
the raw material and the supply chain is
heavily dependent on the car industry,
this is noticeable accordingly and
considerably. In Europe, this leads to
constant further price pressure on the
heavy male goods and for anyone who
still does not know, another example
that this sector is simply not a
self-runner. In the other sectors,
European suppliers benefit from a
certain shift of production to Europe
and the tanners' need to be able to plan
secure deliveries of goods. So far, the
price decline has been limited, but it
will not be possible to escape the low
prices from overseas in the |
long
run, especially if the kill
continues to rise. This week's sales
were essentially limited to random
overseas transactions and the
renewal of individual regular
programmes in Europe. Heavyweight
prices are now beginning a
significant correction, and for the
other categories this will
also become apparent in November at
the latest. However, the differences
in the adjustments will bevery
large, because the overvalued
commodity has a lot of room, whereas
normally valued commodities such as
cow hides, for example, have
correspondingly less. Demand has
been concentrating on the cheapest
alternative for some time now and
this was not the heavy male
automotive material....
The
Kill: The kill
continues to increase slowly, but a
low supply of live cattle and
correspondingly high prices continue
to weigh heavily on production.
Nothing seems to be able to change
this situation in the short term. What
do we expect: The
pressure on prices will continue.
The leather industry points out that
there is sufficient supply and that
it now has the opportunity to
significantly adjust the overly high
prices of the first half of the
year. It can only be hoped that this
will result in an orderly and
reasonable decline by the end of the
year and that a reasonable stable
price basis will then be achieved.
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