Friday, 21.02.2020
Market Report

The US $ in EURO

What happened this week?: The world is dominated by all the news surrounding the coronavirus. Week by week is passing on the infection rate may be officially slowdown in China, but in general the story is far from being over. Decisions taken to stem against the spread are beginning now also for the last one to be remarkable. Travel, trade and transport are seriously hit an almost everyone is more or less touched by the consequences or the side effects. Under these circumstances the trips to Milan were made and we would assume that everyone on its way was more than excited to see what it would mean to such an international event. Certainly have most people checked before the departure how many of their clients, suppliers of friends would come to be met, but in general were most people confirming that their biggest interest was to see who would finally turn up. Big relief. Already on day one the attendance was quite impressive. It may be that the statistical number is down, but the aisles were far away from being deserted despite the majority of Chinese visitors missing. Certainly the coronavirus was the main topic to be discussed and every discussion, but we have not found many exhibitors we visited were actually complaining about the number of visits nor about the quality of discussion. At the end it was all pretty much business as usual and we would even go that far that most exhibitors we spoke came to pretty positive conclusions about the business and commercial discussions. No question, that nobody knows what the medium and long-term consequences of the coronavirus is going to be. Private consumption will be hit, the almost complete shutdown in China will leave deep traps and the disruptions of many supply chains will also show the consequences only in the near future. However, the leather pipeline took it very professionally. Neither leather buyers nor leather sellers were taking it at the end of the world and so they continue just to work. The demand for leather which has been so much in question in the recent history is in many sectors not look to be declining. All the anti leather campaigns including some obsessed designers seem not to work. In particular in garment, but also in shoes and leathergoods the manufacturers don't plan the future without leather. Their buyers were interested in the new articles and colours, they also interested in new and may be more environmental friendly manufacturing processes, but there was rather seen more interest for leather then less. The combat boot style which had been seen on the catwalks already last year continues to penetrate the market. Leather garments can also be seen more frequently what was also already indicated in the fashion shows of 2019. Leaves the unanswered question about automotive and upholstery, but that is not what the Lineapelle is held for. Within strong customer and client relations businesses and sales were concluded and we tend to believe that for the coming weeks it was decided to leave prices pretty much untouched. The situation points to the direction that prices will have to go down due to the conditions after the end of the first quarter. Only by then a clear picture can be obtained by how much the present situation is going to hit leather consumption in total and hitting consequently also the plans for the rest of the year. The Kill: The kill continues to be slow. The carnival week ahead of us, uncertainty, higher life cattle prices and reduced availability of livestock weighs on the situation.Catle is still heavy and so are the hides..  What do we expect: 

Type Weight range Avg. green weight Salted weight Avg. weight salted Price per kg green weight Trend
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 € 0,70 Stable

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0,70


25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0,60


30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0,55

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 € 1.15
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1.05
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0,30
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0,40

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