Cuir A Paris

Some very positive news received about the fair which is now over. By day 2 the number of visitors had increased tremendously despite the Air France strike. There were people who had found other ways to get there although that may have cost them a day. Others unfortunately never made it. Reactions received: Many people, good demand for finished leather, especially for shoe and high end fashion like high quality goat suede for shoe, nappa for shoes and merino for garment collars. Despite the problems in Russia there were visitors from there. Also from Korea and of course Europe. Special notice: The Turkish tanners took a lot of orders for finished shoe leather for Russia. These orders are probably taken from European tanners who are now victims of the economic sanctions. For Turkey this must come as a gift from heaven and at the right moment, just after we have been listening to all their complaints about the lack of orders. We must add that the orders received unfortunately seem to exclude double face business which is of vital importance for Turkey as well. Some figures from the Le Cuir a Paris which, as is now confirmed, was the last event carrying this name. From now on it will be Premiere Vision Leather. There were 432 exhibitors from 23 countries. Over half of the exhibitors were tanners and 80% of those came from Italy, France and Spain (with the Italy the nr 1 present). Only 7.5% of the total of exhibitors came from outside Europe. The next Paris fair – then named Premier Vision Leather – will take place from 10 to 12 February. The next Lineapelle 25 to 27 February whic leaves a bit more time between these two major European events.

United States

Sellers seem not really satisfied with the results of the last weeks. Some are easing their till now very tough attitude, ready to offer more of the favorite hide selections that tanners are looking for and ready to listen to decent price proposals. Maybe they have reached a bit too high with their latest increases but you have to try before you find out. Anyway, today it seems possible to buy at last weeks prices. Maybe not from everybody but at least somewhere. We noted a few lower prices today and none higher. This concerns steers as well as cows. The easier attitude is also noticed with sellers of wetblue. The outstanding sales number (2.3 million) is the lowest since many years but of course we have to take into consideration that the total number of available hides has reduced as well. The kill estimate for this week has been reduced to 570,000-578,000. Hide sellers will quickly use this as an argument to defend their prices. U.S. EXPORT SALES FOR WEEK ENDING 9/11/2014 Hides and Skins: Net sales of 335,300 pieces (all whole cattle hides) were down 17 percent from the previous week and 3 percent from the prior 4-week average. The primary destinations were for China (275,400 pieces), South Korea (22,600 pieces), Mexico (12,700 pieces), and Taiwan (9,600 pieces). Decreases were reported for Thailand (300 pieces) and Portugal (200 pieces). Shipments of 442,700 pieces were up 23 percent from the previous and 17 percent from the prior 4-week average. The primary destinations were to China (273,100 pieces), South Korea (111,800 pieces), Mexico (23,900 pieces), Thailand (8,400 pieces), and Taiwan (6,500 pieces). Net sales of 62,200 wet blues for 2014 were down 68 percent from the previous week and 27 percent from the prior 4-week average. Increases were reported for China (15,500 unsplit and 4,900 grain splits), Thailand (18,000 unsplit), Italy (15,500 unsplit), and Vietnam (4,800 unsplit). Decreases were reported for India (1,600 grain splits), Italy (600 grain splits), and South Korea (200 unsplit). Net sales of 3,200 wet blues for 2015 were for China (2,000 unsplit), India (700 unsplit and 500 grain splits). Shipments of 137,000 wet blues were primarily to China (44,800 unsplit and 7,400 grain splits), Italy (15,800 grain splits and 8,200 unsplit), Vietnam (11,400 unsplit), and Mexico (12,100 grain splits and 2,100 unsplit). Net sales of splits totaling 447,900 pounds for 2014 were reported for Hong Kong (200,000 pounds), Taiwan (200,000 pounds), and South Korea (47,900 pounds). Shipments of 224,800 pounds were reported to South Korea. Sales figures for the week in question were rather average overall but good for China. Other destinations showed all mediocre results. Total wetblue sales can only be called disappointing. Korea alone showed a much higher figure the previous week. 

Global slaughter

Global cattle slaughter is according to USDA set to increase by 1.1% or about 3 million hides in 2014. This means we shall NOT have more hides to make good leather…. Yes, we should not forget that the lower kills are seen in countries/regions in the developed world where one anumal slaughtered means as good as one hide. And a good one as well. But where the kill is up is not in the developed but in the developing countries and LDCs (least developed countries). Here hide recuperation is not 100%. Many hides never reach a tannery for a range of reasons. At the same time they are mostly smaller in size, may have humps, brands, scratches, ticks and other defects which down grade the quality. Many of them are not machine flayed but hand flayed while some look like they have been taken off with an blunt axe (personal experience). Thus unfortunately a 1.1% increase in global kill will not give us more quality raw material to tan.

India

Business is and will be slow in India for some time to come because of national festivities. Firstly Chathurthi was a ten day event which was followed by Ayudha Pasja holidays which also take ten days and this will be followed by Bakrid on 5th October (1 day earlier in the Middle East) which is preceded by the 2014 Haj on 2 and 3 October. In short business will not really resume before 7 October. Not helping either is the lawsuit filed by activists in Southern India who want to see a number of tanneries closed because of pollution. The matter is pending. Tanners have asked the government not to be to harsh on them and let some production continue while curtailing tanning activity and thus pollution. This immediately resulted in tanners being less active on the raw market and leather buyers reducing their purchases as well. Right now some inquiries on the domestic market are coming back however. DOMESTIC MARKET Goat: Some demand is back for 5/8 feet skins in TR3/4 grades for production of finished superior linings. Negotiations are ongoing fr unsold stocks still around. There is demand also for 4/6 feet high grades. The upcoming Bakrid festival will supply bigger skins after 10th October. Business has improved for suede suitable skins and this is likely to continue in the next weeks. Certain sellers are already asking 54 Rs for these skins (2 months payment) but many dealers still prefer to wait. Linings 4/6 sqft move at 48-50 Rs and mesh suitable skins at 38-40 Rs. Sheep: Continuous activity in resin nappa with leather garment makers in North India in the usual mixed grade package deals at prices which advanced by 0.30 Rs per sqft because of higher production costs sellers say (pollution charges, chemicals, etc.). Steady trade in full chrome low grades also at prices 0.25 Rs higher. Cow: Shoe factories have been buying beige linings at steady to 0.25-0.30 Rs lower prices since raw hide rices have eased. Some expect further reductions. Kip upper leather sells steadily to the North at unchanged prices. Cowcalf: Patch sales at prices unchanged to a bit lower. Buffalo and buff lights: Firm business but prices still the same. Buffcalf: Low grades are selling at a reduction of 0.50 Rs per lb in veg tanned. EXPORT BUSINESS Goat: Lineapelle brought fresh inquiries for some of the tanners. They hope their sales of finished 4/6 sqft leather will improve. The bigger 5/8 sqft skins always enjoy demand but there are not that many around. Stricter implemented rules and regulations make it ever more difficult to export veg. tanned. Full chrome standard linings keep selling to Italy at current prices while there are trial orders received from Portugal and Spain for same. Sheep: Demand from Japan for white sprayed full chrome natural suede skins remains slow and irregular but sometimes a buyer suddenly jumps up and orders even for air shipment (prices in the report). The extra transport costs for buyers account being no problem. But then one may not hear again for quite some time. They do continue however with trial orders of this product in finished form. European countries occasionally buy finished nappa high grades (prices in the report). Full chrome beige cow linings keep selling to Italy, Portugal and Spain at the prices in the report. Buffalo and buff lights: Tanners are waiting to see what Lineapelle brought them (unknown till now). Calfkins: No fresh business done but tanners expect something to come from Lineapelle this or next week. Buyers preferred to wait for the fair results. Raw hides and skins: In the South goatskins suffer from Monsoon inflicted defects and prices dropped 15 to 20 Rs. Sheepskins however remain firm and teady. In North India supplies will pick up from the 2nd week of October. Raw hides dropeed another 20 Rs. Buffalo and buff lights remain unchanged. Calfskins are off season and prices declined 5 Rs more while arrivals are fewer.