Friday, 02.04.2021
Market Report

The US $ in EURO

What happened this week?: This week was the last one of the first quarter. Usually we would already be in or preparing the trip to the APLF in Hongkong. The event at the end of the first quarter was always a good chance to gather a full overview of the market and to learn more about the situation in other parts of the world. It has really been always very important, because nothing can substitute the chance of personal meetings, the nightly casual exchange of opinions and the opportunity to speak to people one has usually not on the regular list of communication. Often also meetings with people up or down the supply chain come on top and it has really never been that people went home without plenty of new information and impressions. It had been missing last year already, but that was right at beginning of the global expansion of the pandemic while this year the leather business tries to find a return to the normal routine and would be really desperately in need of more insight and wider information to find a solid base for the market evaluation for Q2 and Q3. We are missing this now and that is in our view not for the good. The trade is rather based on reports, email and players are far more driven by their local emotions rather then by the real feel for the wider picture. This can be a risky and even a toxic combination for the summer, if the feel turns out to be wrong and not considering a wider and in-depth evaluation of the market and leather business. Presently the prices are feeding themselves. It is volume what counts and not the prices which worries. Many consumer product companies plan for the time frame after the pandemic. The general management consensus is that by late summer the world will be vaccinated and the consumer demand will see a massive boost. If you believe in this theory in the management board then you have to be prepared and this means the orders have to be placed now. If you feel that you should be save to be supplied and not your competitor, one might even come to the conclusion that a bit more might be a bit better. In case that the management board is a bit late with their action in view of the transport problems to meet the time frame they get even more stressed and hyperactive despite it will not change anyway. It is a bit like with the vaccinations. everybody want to be served first, but the total final number doesnt change. In the hide market such behaviors are converted immediately into higher prices - despite that it doesnt change anything. No more hides and no quicker transport and absolutely no guarantee if a) all the finished product planned now will be sold and b) if the prices which need to be achieved will also be paid at the end. At the moment customers are pleased, but no proper calculations seem to be made. If one looks at the market of chemicals and the rising cost of labor and other cost it is going to be interesting who will absorb everything what has to be converted somehow. In the raw material field this is far away and only the price of the next trade counts. This week was strange. We have not been rewarded by the interest and prices other people claim to have. We have hard of spectacular prices paid from Asia and bids in volume. We had very little to choose from and at steady levels best even when we had to understand that we were one of the few actually circulating a regular offer list. In Europe the sales activity was indeed delayed, because everyone waits now what happens next at the abattoir door and the butchers will have little mercy as long as the hides move. So, for the week the number of sales were few and the prices for the little steady.  The Kill: In view of the Easter break the kill dropped this week. spring is arriving and slowly cattle will move back to the fields. We think the kill will be seasonal now and numbers a little lower for some weeks. The weights continue their decent and show that the overhanging cattle is cleaned up for the moment.  What do we expect: With all the enthusiasm it would be naive to think that things will change with immediate effect. It needs time and a clear signal how to deal with the need to raise finished leather and product prices to justify the market. In the meantime the tanner resistance  and the butcher ambition will rise. Difficult for everyone in between. Happy Easter!

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 € 1,10

  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 1,15

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 € 1,40
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1,30
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 € 0.60

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