General

Leading wet salted hide markets like USA, Australia and Europe started to give in to the widespread pressure ongoing since some time and lowered most prices in the course of last week. Although slowly and civilized without causing big waves, we do hear about some (no doubt) market claims and delays in payments and LC openings. Nothing dramatic however and we have not heard of any stories that could not be handled by the parties concerned. If a limited but necessary correction can be established like that trade can smoothly continue.

United States

Prices continue to erode slowly slowly and in small amounts. Slow enough not to make too much damage we may hope. Yesterday was a holiday in the US and no trade reported. Interesting to see that our own average price reported for Dairy Cows is now exactly 10 Dollars below the top price of 90.50 USD in March this year. And this wile the kill is some 14% percent down from last year. The kill last week counted 564,000 head. A few thousand over the estimate.

Germany

While business is quiet (but present) the autumn kills are producing more hides which here and there may start to get in the way. This more for the standard items in slow demand than the best and most favorite types. Prices are in this case hard to pin down. Some may still ask more than the prices in this report while others may be selling at less. It all depends on the individual situations of sellers and of course the needs of buyers. In short this means that prices can be discussed.

Brazil

And again for week 45 the CICB raw hide index prices does not change and remains at 3.56 BRL/kilo for the 7th week in a row. In October Brazil exported 2.8 million hides which is slightly more than in September. Almost half of this (48.3%) was finished leather. Wet-blue represented 38.5% and crust 12.9%. China (incl. Hong Kong) was the biggest taker counting for 35.7% of the total value. Italy was the second biggest at 15% followed by the United States with 10.2%.

New footwear materials

Due to the high raw and leather prices there is increasing interest for alternative non leather materials. This topic is so hot that a conference on the subject is to take place in the Netherlands on 11th December with as title – Future Footwear Materials – at the High Tech Campus in Eindhoven.

The Sauer Indexes

All indexes clearly show prices are on their way back, showing what everybody was waiting for. Of course not all prices are down. Plenty have remained unchanged, others changed a lot and others again a little. Over some thirty different countries hide prices thus averaged down about 3% till now. We dont know if more will come since the declines really only started last week (earlier in the USA). It will be very interesting to see how we shall sail through the last weeks of the year.