Pressure on hide and skins remains

Thursday, 30 July 2020

By Rebecca Wright

Hide and skin prices have been under long-term pressure, and it’s only been increasing since the beginning of the COVID-19 pandemic. Over the past seven years hide prices have fallen by almost two thirds.

The Italian tanneries have now begun their traditional summer holiday. Chinese buyers are reported to be in and out of the market, and only really purchasing in any volume if they can get a ‘bargain’, according to theSauerReport. Demand in China is reported to be for products at the lower-end of the market rather than for premium products at the moment. Demand for footwear leather and leather for the luxury car sector has been, and continues to be low. However, sellers are reported to not be in too much of a hurry to sell. Some have already gone to the expense of preserving hides, and so are happy to keep hold of stock for now.

Demand for large sheep skins is reported to be poor too, with abattoirs paying for the disposal of larger skins from older sheep. New Zealand is suffering from the same market pressures as here in the UK; demand from the clothing sector down. Wool prices in Australia and New Zealand are both also suffering, again similar to here in the UK.

Rebecca Wright

Analyst - Red Meat

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