Are global hide prices shifting towards the buyer?

Worldwide
Published:  26 August, 2021

According to analysis from theSauerReport, and sources in Italy, hide prices could be about to soften over the coming weeks.

From the low points of Summer 2020, hide prices have more than doubled, driven by a worldwide shortage and a sudden spike in finished leather demand from the Far East (mainly China) and more recently from Europe.

Added to this are outrageous transportation charges, particularly in China, where some prices for shipping have jumped by over US$4,000 per 20 ft container. theSauerReport questions whether the Eastern bubble is about the burst.

Italian tanners will return to work very soon and, while many European suppliers will see this as the only viable place to sell their hides, those in Italy are likely to be cautious when buying and out to avoid inflated prices.

However, if reports are true and shipping issues continue to plague the industry for years to come, this supply and demand problem may become the norm. If so, what will happen to the low value hides that European tanners do not want?

For the latest raw materials prices and regular market analysis, head to www.theSauerReport.com.