Friday, 15.10.2021
Market Report

The US $ in EURO

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.

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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