In the North American market this past week, steer prices first dropped $2.00 and then recovered much of the lost by weeks end. Prices were scattered and volume did not appear to be especially heavy. The cow sector gave a little ground but over-all was respectable.
Short covering traders seemed to be a significant factor but the over-hang of wet blue steers still put a damper on any upward momentum. To the contrary, it had a negative effect.
Statistically, outstanding sales, (on orders taken but not yet shipped) fell to a four month low and new export and domestic sales, for still another week were below slaughter.
The High Point Furniture show last week met with some success in the leather sector but the lack of new home building continued to crimp demand in not only leather but all furniture. A report on the leather section of this national Fair can be obtained by sending an email to firstname.lastname@example.org
In Europe, with all the malaise seen on every level, cows were bound to descend along with other hide categories. Those who needed to sell this week did so at down money, regardless of weight average, purpose or origin.
As is usually the case in a downward trend, the “retail price” for one or two trucks was seen as higher than the “wholesale” market for the same general description. On North German 25 and ups, for example, the EUR 1.50 asking level of a week ago gave way to some small business at around EUR 1.45 this week, while serious quantity interest was only displayed at EUR 1.40 delivered NIT. In fact the last bids we heard of this afternoon were targeting EUR 1.35 North Italy. Dutch cows 25 and up were said to have sold at between 1.35 and 1.40 NIT.
South German 30-39’s brought bids of EUR 1.50, with a top of 1.55 for extra heavies, presumably for the automobile trade.
Even the vegetable market simmered down this week as reported by French dealers who took down money for there 32 and ups. What was once sold at 1.75 or even 1.80 a few short weeks ago backed off to this week’s sales of EUR 1.70 delivered Tuscany. The chrome market was less, of course with sales recorded at 5 to 10 cents below those of early October.
Bids out of China were down both in number and in price this week, further hampered by the weaker dollar, which decreased this week by over 2% versus the euro. Dollar-based bids were placed at $2.00 under those of a week ago. We did not hear of any trading in that direction.
The Brazilian wet blue price rode above that which Europeans could be tempted to buy, as alternatives to TR1 heavy full substance offers at $1.45 were sufficient to force any bidding at well beneath this level. Meanwhile, Indian buffalo continued to make its way to Italy on a cheaper basis to satisfy the economic Madras-type production.
South American suppliers are daily struggling against short sales and trying to get better prices than most buyers are trying to obtain themselves when they offer to pay less than what they know the price should be.
It is still very important to bring to the table the fact that there are still not enough hides for all tanneries to work full at the same time. The raw hide market has been reduced quite a lot these days.
According to their Livestock Marketing Associating, Paraguay has lifted a one-month ban on beef exports and will begin negotiations with other countries to restart sales. An outbreak of foot-and-mouth disease at a ranch in central Paraguay on Sept. 19 forced the government to suspend shipments. Before the export closure, Paraguay was expected to be the world's eighth-largest beef exporter this year, according to the U.S. Department of Agriculture. Beef is Paraguay's leading export after soybeans, and the suspension is expected to have a notable effect on the country's economic growth this year.
A great part of the most important professionals, enterprises and entities of the leather chain in the world will be at the World Leather Congress, which will be held in Rio de Janeiro, on November 9th, 2011. One of the enterprises confirmed for the event is JBS, the largest Brazilian exporter of leather that joined the World Leather Congress as its Master Sponsor
In China, In accordance with a notice issued by Fujian provincial government the tanneries with production capacity below 100,000 pieces of leather will be eliminated by January 1, 2012, the end of 2014 will close production less than 300,000 pieces.
Only one tannery in Kemu Tanning Zone in Fujian province reaches the requirement on production capacity, the rest of 62 tanneries are facing elimination by the end of this year.
More reports are being received of flooding in Thailand in and around the Bangkok area. We have no concrete reports yet of any tanneries being flooded but both major tanning zones are presently imperiled. More on this should be forthcoming next week. A number of factories in various industries have been forced to close including an Ecco factory as well as Toyota, etc. All of this has not only discouraged Thai tanner hide buying, but had forced delays of incoming shipments and letter of credit openings
Organizer: Wenzhou Shoes & Leather Industry Association
Zhejiang Donnor Exhibition Co., Ltd.
Zhejiang Donnor Exhibition Co., Ltd. Tel.: +86-577-88902222 Fax: +86-577-88901788 Email: email@example.comCopyright © 2017 support:lianke