Some uplift for ox hides, but prices still around historic lows

Wednesday, 14 October 2020

Prices for UK hides and skins remain low as economic uncertainty continues to weigh on markets. Despite this, ox hides have seen some improvement over the last few weeks.

According to theSauerReport, an improvement in Chinese domestic demand has helped hide prices, with increased trade in upholstery leather and small leather goods. Reports suggest that demand has been outstripping supply in some parts of the market, as slaughter rates in many countries are lower than normal.

There has reportedly been some pressure recently on tanners to pay higher prices for hides, which have largely been paid. However, theSauerReport states that price gains are now starting to slow, with tanners potentially pausing to re-evaluate the market if their margins are being squeezed. This may be especially true for tanners in other parts of the world, who have had to pay higher prices, without a domestic uplift in demand.

Demand for sheep skins is reportedly still poor, with prices remaining unchanged for some time and many skins trading at negative value.

UK exports of raw hides and skins so far this year (Jan-Aug) are down 25% in value from the year before, although volumes are down only 5%. This demonstrates the weakness of the global market, where buyers are reported to have been able to upgrade in terms of quality, while still achieving lower prices. Export values have been falling for several years, as global demand for leather has reduced.

Hannah Clarke

Analyst - Livestock

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