| World View |
25 NOVEMBER: ARGENTINA: Raw hide prices this week have stayed unchanged however we believe they will increase by about 10 % in the coming weeks as a consequence of the Government intervention in meat prices and even the export duties on hides. Argentina is extremely sensitive to the possibility of two digit inflation since in the past couple of decades the country has had other hiper inflations to cope with all of which ended with the Government in power being ultimately toppled. Therefore the Govt is reacting with any and all measures they deem possible to lower prices very specially of bovine meat which is by far the most important component of the family shopping basket.Argentines are consuming 70/75 Kgs of meat per inhabitant per year (calculation includes babies and toothless grand- parents) so the price of meat is an extremely sensitive political issue. Since the pressure on the meat market has been export driven the Govt has increased from 5 to 15% the export tax on meat.Since meatpackers convinced the Govt that the value of hides was lower than International levels and was a bullish factor on meat prices, they lowered the export tax on hides from 15 to 8%. Even so the export of Argentine raw hides is very unlikely given the costs of conservation,transport,lack of standardization etc.However the export of wetblue is a possibility if and when prices would become attractive ,which at the moment is not the case. Slaughter rate has also been complicated by Govt intervention in the minimum weight allowed for cattle to be sacrificed.In the past 60 days the norms have been continuously changed and therefore cattle ranchers keep changing their cycles.In any case the year will end with a kill of approximately 14 million which is relative to the past decade high but is less than obtained last year. Leather business is good in the shoe trade,and slow in upholstery, both in the furniture and car areas. Splits are very firm and prices are continuing to increase. The exchange rate today is 2.97 Pesos to the USD BRAZIL: The latest reports say situation almost back to normal now. Tanners who were out of the market for raw purchases are back in. This increased buying activity pushed prices up by 0.10 Reales (abt 0.05 USD). The kill and the currency show no new surprises so the over all situation has quite improved this week. GREECE: Hide market slightly firmer but retail leather business for the Xmas period remains very slow. TURKEY: Lots of bad news reported. The Ramadan fasting month and the Ramadan feast afterwards brought nothing for the Turkish leather industry. Neither did the winter till now. More tanneries are closing down. Raw material prices are coming down; local sheepskins as much as 25 percent- hides about 5 cents/kg - goatskins remained unchanged. The uncertainty continues and the mood for next year is generally pessimistic. CHINA: It is sure that at least some Chinese tanners have bought raw hides abroad this week for shipment after 1st January. This means they either do not believe the new import regulations will be reality by then or they simply have no problems in abiding by them. 24 NOVEMBER: UNITED STATES: Closed for Thanksgiving holiday. KENYA: The new interest from China for wetsalted hides earlier this week is based on a price of 86 cents delivered all costs, profits and commissions included while the lowest price reported at origin is 85 cents fob. A long way to go before a contract can be signed. Taking the pending problems in China into consideration it is doutfull if the Chinese would even actually buy at 86. ETHIOPIA: In spite of the strong global demand goatskin prices have not really increased further through November although we see some low grades priced at a Dollar more than before. Hides and sheep still show the same prices as well. SENEGAL: Hide prices did not drop further this month but traders give the going offers little chance to find interest. EGYPT: Finally some movement in the leather industry possibly motorized by the approaching Christmas and Eid EL Keber festivals a few weeks from now. Shops are preparing and setting up more goods in their windows. A leather fair was held in Cairo 17-21 November. Main participants were Italian companies showing raw materials, chemicals, machines and finished products. From the same country there were also complaints about initial invitations to a number of Italians which did not get any follow up. Those involved who had reserved those days to travel to Egypt were clearly not happy. Most hide prices are 1 or 2 Dollars per piece higher than in October and also wetblue sheep and goatskin prices are up by 2 Dollars per dozen. INDIA: Cowhide prices remain firm. Tanners still prefer the domestic wetblue business to the export lining trade. Wetblue is simply more attractive to them. For sheep leathers prices may be lower. For goats they are steady. 23 NOVEMBER: CHINA: Quite a few tanners both domestic and overseas did meet with the Chinese Leather Association for preliminary exchange of ideas on the import regulations. Today they shall meet with seven branches of government offices, including Treasure Department, Taxes Authority, Environmental Agency, Custom and National Development and Evolution Department, Commerce Department and Light Idustries. Korean and Taiwanese tanners were aggresive and said that if the new policy is implemented, they might as well pack and go home. A representative of the Taiwanese tanners talked about competitiveness and financial burden to tanners and down stream industries. Richina explained the financial burden as well. Kasen presented their view on what complicated and financial difficulties they will encounter from tanning to cut and sew to complete furniture export. However, they took a more reserved posture (because they were recently listed on the HKong stock exchange and afraid any negative report might affect their share price which is about 10% below it's high (recovered from 20% below). It sounds as if the Chinese government officers only live in ivory towers and do not understand the real world of the industry (we have heard that in many other countries too - the editor). They asked very naive questions and gave very naive suggestions to resolve the complicated problem. This is the first time that Tanning industries succeed in drawing the attention of so many Government Departments. After listening to the problems the tanners are going to encounter, do they realize how serious and complicated it is? And what will happen if the new policy will be implemented Jan 1st 2006? Questionaries were handed out to the 21 tanners participating in the hearing. One has to wait and what the bureaucrats are going to do next. Amend it, delay it or just go on with it? While Chinese tanners and their government are discussing how to go from here, what is the trade doing? With so much uncertainty in the air it is easy to imagine whether many Chinese are prepared to buy raw stuff now for arrival after 1st January (I doubt it). And please don't forget the usual Chinese New Year business break; Or whether all sellers are ready to ship goods knowing their Chinese buyers may have to cough up 22 percent more cash to pay for the goods upon arrival and may be less enthusiastic to pick up the documents?(I doubt it); whether all L/C's for pending contracts will be opened ?(I doubt it). If the Chinese stop buying during this period of negotiations with their government what could happen to American hide prices (I have some idea) and if so what would happen to prices in the rest of world (I have some idea)? What will the market do if the Chinese stay out of the market for some days/weeks or when their raw imports will strongly reduce (I have some idea). In short it would come in mighty handy if they sorted their problems out quickly so the trade knows what to expect! TURKEY: The fact that the Turkish tanners are not buying many raw lambskins is by now sooner normal than abnormal. They live of Russia and the Russian buying season has finished. Winter has started and whatever is needed (less than in previous years) is in the shops already. CHRISTMAS CONSUMER SPENDING EUROPE: Euronews TV announced this morning that economists expect Xmas spending this year be less than last year in most EU countries. An average decline of 9 percent is expected. It was also said Spain could be the execpetion. BRAZIL: Slaughter is expected to grow in December as more cattle will be available in the market. ITALY: A new theory has surfaced to explain the calmer market of the last weeks in Italy after the Lineapelle highlights and enthusiasm. Italy took all the sample orders at the Bologna fair but once buyers had decided on the product they wanted they placed the real orders in Brazil (or elsewhere)! Nonsense? Maybe not. 22 NOVEMBER: COMPUTER PROBLEMS: Made updates yesterday impossible and not all problems are solved yet. RWANDA: No changes whatsoever. Demand for goat remains stable, but still nobody is prepared to increase the prices on the buyers side whereas the inland collectors are increasing the prices. Demand for sheep from Asia is non existant, but Italy seems to have some interest CHINA: News coming in from Thailand says the possible changes in raw import strategy in China has already resulted in more orders for the Thai tanning industry. China has been one of the most active buyers on the goatskin market these last months. From the fact that so many goatskin sellers are now in China or just come back to solve their claims shows that once more the Chinese have been buying products they do not actually know (this is what the trade tells us). It also proves that the need for those skins today is probably not as big as when they were bought. The alarm light is on! WOOD PACKAGING INTO THE E.U.: Starting 1 January 2006 all goods on wooden pallets shipped to the European Union must be accompanied by a fumigation certificate (method ISPM 15). If you are shipping to the European Union please contact your fowarding agent for details. GERMANY: New hide prices will be negotiated next week. The plan is to get bull hides prices reduced by 10 percent. Reason for this are the lower prices paid for automotive leather which are on their turn connected to the disappointing car sales. A STEP BACK: The confusion in China understandably slows global market activities. The good demand for light hides for the shoe industry has reduced as a consequence. Demand for heavy cows remains good. CHRISTMAS: This year Christmas holiday will in theory be limited to a monday only. Still factories may decide to close longer which will be a good indication of how busy they actually are. THE KILL IN THE NORTHERN HEMISPHERE: The cold has suddenly set in which will no doubt result in increasing slaughter figures. UNITED STATES: Contrary to the above news the kill in the USA last week remained below the 600,000 again (589,000). Prices are still unchanged. Buyers and sellers maintain their own ideas which rarely meet. This week brings us Thanksgiving holidays which traditionally makes it a quiet week alltogether. The kill will be lower also for this reason. Some reports state there are fewer hides available than initially thought and certain Packers had to ask their customers for extended shipping periods. This situation is unlikely to lead to lower prices of course. New business for shipment still this year therefore is said to be hard to find. Most offers now are for Jan-Feb shipment. Still we must not forget that in spite of the lack of news from the US market the country still produces over half a million hides per week of which none are burned or buried. They are all sold to tanners somewhere. The fact that there is no news or change in prices does not mean there is no business! What we do not know however is how the China business will develop. If indeed will happen there what everybody talks about (but not decided) a lot of raw hides may no longer go to China next year. Where will they go then? Or will they go in wetblue? The American hide market does not seem to have reacted in a strong way to the wide range of possibilities yet. Since anyway nothing is sure at this point, so much the better. BOTSWANA: A correction to previous news is necessary. BMC, the Botswana Meat Commission is not bankrupt as was reported last week but they are in a very difficult position. The tannery is up for sale but recent visitors report the costs of cleaning up the sludge dumped for years may cost more than the tannery is worth. No buyer has presented himself yet. SPAIN: Lamb kill figures are still very low and this will stay so till Christmas. Sales of raw skins to Turkey remain very few. Most skin and hide prices remain unchanged for now. KENYA: Today is election day in Kenya for the constitution referendum. People hope all will pass smoothly but not everybody is convinced. Hide prices kept dropping but may have balanced now since there are some new enquiries coming from China while also Pakistan is showing some interest. Chinese price ideas are extremely low though. Goatskin prices remain very firm and may have reached levels where interest could switch back to sheepskins. After all goat and sheep have proved interchangable quite often these last years since price is more and more decisive. NEW ZEALAND: Most skin sales reported were at lower prices again but not for all selections. For some ribby and run lamb sales were seen at better prices than a fortnight ago. ARGENTINA: The export tax on raw and wetblue from Argentina was reduced yesterday from 15 to 8 percent. This is of course against the will of the tanners but they are not too excited yet and think they can handle it if stays that way. The eight percent keep prices still too high for export markets they say. However, if in its fight against inflation and the strange dealings between the government and the meat packers, further reductions in export tax are envisaged, tanners do fear the hides they need to tan may leave the country. BRAZIL: Things are rapidly improving in Brazil. Transport of live animals from Parana and Mato Grosso do Sul is permitted again. The kill is back to 80 percent of the normal situation as one report states. Export sales are improving also. The currency has calmed down also and the Dollar is now pretty stable against the Real. BRAND, FOOTWEAR AND FASHION NEWS IN SHORT : ========== (find the complete stories on the subjects by clicking the Just-Style.com button at the bottom of the 'World View' - then click left centre on 'News' and 'Latest News' or 'Search the Archive' for previous articles). UNITED STATES: Many major shoe brands reported higher sales figures for Q3. To mention some: Payless ShoeSource plus 3 percent; Dick's Sporting Goods plus 2.9 percent; Sports Authority plus 2.8 percent; Foot Locker plus 2.7 percent. Also Hibett and Shoe Carnival posted increased sales figures. Amazing that all increases are about the same 3 percent. 18 NOVEMBER: CROATIA: Local prices are higher but export offers remain about the same. There is demand for hides and calf from Italy and from Germany. UNITED STATES: Without many concluded deals heard off, steer hide asking prices continue to inch higher while cows and bulls are losing some of their recently gained interest. CHINA: There is no end to the stories about the new import rules. It was now reported tanners will also need a CIQ licence (no idea what these letters stand for). This licence will only be issued to bonafide tanners and not to traders. A.o. it forbids resales of raw hides to third parties. Tanners must tan themselves what they import. For the moment we shall add this news to the box full of mysteries and wait till the truth comes out through an official government publication. SPLIT: Demand for good splits is improving from China and HKong for shoe, suede and upholstery destinations. CHINA 2: It is expected that if the new import rules will be implented as proposed, the Korean, Taiwanese and other foreign owned tanneries are likely to be the first ones to move out of China and (probably) back to their home country or elsewhere. These factories came to China because of the advantages of tanning there instead of at home. Once these advantages disappear, or worse, turn into disadvantages, one may presume these tanners will quickly disappear from China. Tanning industries in the owners' countries may then increase again in importance. As said when starting to write about this subject if all goes as is proposed it could turn the leather world upside down. We have to wait and see. AUSTRALIA: Thanks to a weaker Australian dollar and good rains the meat business is improving and so is the hide trade. Good demand from Asia and from Europe especially for lower grades to be used in the shoe industry is reported. The problems in Brazil could be connected with this new interest for Australian raw hides. Calfskins remain much sought after as well. Lamb and sheepskins improved in volume but not in quality. The many different qualities in the various parts of the country explain the big differences in prices. For lambskins of similar descriptions difference of 6 to 7 dollars were recorded. The sheepskin trade is steady. China keeps buying and in spite of the slow global wool trade China's preference for skins with more wool persists. For the same reason they prefer English over French skins nowadays. Kangaroo skins remain hot hot hot. BRAZIL: From various sides it is heard that the kill is slowly recovering from the Aftosa problem. In spite of the problem sources in Brazil say that by the end of the year Brazil will still have produced more hides (40 million) than the United States in 2005. We do not notice new changes in hide prices. 17 NOVEMBER: SWEDEN/FINLAND: No changes in prices. Demand for heavy hides remains strong. It is thought that the structural changes in the hide trade in South Germany may have something to do it. Now that two thirds or more of the hides available in South Germany end up in the hands of one grou, there are other tanners and traders who must find other sources of comparable qualities. Scandinavia is one of them and for this reason it could enjoy more interest for its hides. Sweden had a good slaughter season till now. Finland fears its kill may drop as much as 30 percent next year once EU subsidies stop. CURRENCIES: The US Dollar has reached its highest rate against the Euro, Pound Sterling and Swiss France in two years. That must help calculations of all non American hide exporters to Asia where purchases and bids are all in Dollars. However, as was quickly pointed out, those buyers also know this and will find this an argument to reduce their bids. So maybe we should say it helps sellers who still have pending contracts or currencies to cover. UNITED STATES: Not much action. Buyers and sellers still stick to their own hide price ideas which simply rarely meet. Split prices increased a penny. BRAZIL: Although in this report you find prices which are all over the place (it has never been different) we dare now conclude from information in various markets that the most reasonable value of wetblue unsplit Frigo hides is close to 1.05 USD/sqft. Some even state that production of a Madras type corrected grain could be produced cheaper in Italy than in Brazil because of the expensive Real versus the Dollar. ITALY: Hide prices offered to Italian tanners remain firm. Maybe the lower kill in Brazil adds a bit to the higher trend. The shoe upper sector is finishing the winter/spring season but prospects for the coming months and next winter are good. The same counts for leather bags backed by good demand for light ox/heifers. The medium high upholstery business show good movement also while lower corrected grain Madras types could possibly be produced cheaper in Italy than in Brazil (see above) due the latest currency developments. Upholstery tanners who till recently were happy with programs for a week can now be blessed by programs which keep them busy for up to a month. This is good news since it takes the knife off their throat and gives them the possibility to say 'no' to orders at too low prices. A luxury these tanners did not have for a long time! AUSTRIA/NETHERLANDS/BELGIUM: Prices remain the same as in October. ROMANIA: Prices remain the same but there seems to be a clear shortage of bull hides in the country. RUSSIA: It was noted that Russian wetblue offered at 11.00 USD/m2 or about 1.10 USD/sqft is good value for more when compared to ceetain other origins. BRAND, FOOTWEAR AND FASHION NEWS IN SHORT : ========== (find the complete stories on the subjects by clicking the Just-Style.com button at the bottom of the 'World View' - then click left centre on 'News' and 'Latest News' or 'Search the Archive' for previous articles). UNITED STATES: Leather garment giant Wilson's which operates 430 stores in The US reported same store sales dropped 11.3 percent in Q3. Mainly due to the warm summer they say. On to year-to-date basis the same figures stil show an increase of 3.1 percent. 16 NOVEMBER: UNITED STATES: While possible changes in the Chinese import regulations and taxes are a source for al kinds of speculation prices remain on the firm side. CHINA: The possible changes in the Chinese raw hide/skin import procedures keep discussions going everywhere. I would like to add two more possible consequences: 1 - Chinese will try to buy whatever they can before new rules become effective (but there is no sign of that yet). 2 - If they do become effective and there is no other way for the Chinese tanners but to pay up, they will probably offer/pay less for imports to make their calculations fit since it is unlikely finished leather buyers are going to pay more because of new legislation in China. Raw material sellers may then get better prices from other countries. This also could lead to a complete revision of the global raw material trade. Anyway let us not forget it is all just speculation for the moment. Nothing has been decided and nothing is sure yet. Also think about this famous saying we have in the Netherlands: The soup is never eaten as hot as it is served. Big changes have been announced in China every year but finally there never was much that really changed. We'll see what it will be this time. CAR SALES IN USA: Car makers are again starting some super sales promotion programs in order to get out of the present slump. It could be about the same as the Employees Discount for Everybody program which was so successfull earlier this year. But does it really help? After such programme nobody buys cars anymore as we have seen. Now they start a new program. And after that? It all looks like a vicious circle to me. COSTA RICA: Costa Rica like other countries in Central and South America are trying hard to increase their prices using the foot and mouth disease problems in Brazil which results in fewer hides being produced there, as justification. Increases of up to 3 Dollars have been noticed but they were not paid. In spite of lower kills in (certain parts of)Brazil there is no hide shortage. Recent visitors speak about plenty unsold stocks in many tanneries. BRAZIL: The problems in China are now the topic of the day and little is heard anymore about the F and M problem in Brazil and its consequences for the leather trade. For the moment at least these consequences remain very limited. True, meat exports are still forbidden to many countries. True, the kill is down a lot in the parts of Brazil concerned; but there is no rush on Brazilean hides and there are no shortages. To the contrary plenty stocks are still around in country as travellers there reported. Brazilean exporters react individually and in different ways. We see some who increased their prices and talk about reduced availabilities while others unload whatever they have too much and accept the prices offered to them. Both sides no doubt have good explanations for why they do what they do. BALTIC STATES: There is decent demand for wetblue male type hides but demand for cows is totally absent. COMPANY NEWS: United States - The world's biggest meat processor Tyson saw its sales for the fiscal year 2005 decline to 26 billion USD from 26.4 billion the previous year. The ban on meat exports to a number of countries is quoted as main reason while also the hurricanes had their effect on sales. CHINA 2: Traders presently in China report that many Chinese buyers do not want to take any positions while the new import rules and regulations remain unclear. Understandable. The more since more than one Chinese tanner reported disastrous results for this year already BEFORE the new possible new import rules came in the news. The letter on this matter written by CLIA (Chinese Leather Industry Association)to one may presume all its members announces the new policy will be valid as from 1 January 2006. Other voices say this could be 2007 and that anyway nothing has been firmly decided yet. Funny is the last sentence of the urgent notice written by CLIA which says - quote we hope that all corporations can hold this secret and do not show them to the media unquote -. FRANCE: France like the rest of Europe sees demand decline after the short lived enthusiasm of the Lineapelle days. Hide prices are not coming down however. Traders say the sold forward positions of the abattoirs are such that nobody should count on reductions before end January. A clear and tough statement! Calfskins enjoy less interest too but for this product there are just as many who say prices will decrease as there are who say the opposite. The lambskin market is dead. The Chinese clearly prefer the English skins for reasons of quality (more wool). GERMANY: Hide prices have still not changed and there is nothing new to report which has not already been covered by the general news on the European hide trade. For good quality heavy splits however we see more interest from Spain and prices increased again by about 10 percent because of the small numbers available. The increases have been paid as well. SPAIN: Interest for good quality European splits increased. Higher prices again have been paid for German material. Lower classed origins like South American splits are not wanted at all in Spain. Good business reported in top quality grain Catalonian leathers. This finished material sells at 3 Euros per foot and more. Spain also shows a small but slowly increasing export of soleleather (and other types) to India. Happy with finally some more positive news from Spain one must add that volumes of these good things are small. CHINA 3: The latest rumour (all news is still nothing more than that) is that the new import rules under discussion will only apply to foreign owned tanneries/companies. Strange! 15 NOVEMBER: CHINA: Business remains disappointing for the Chinese tanners. Orders are not what was expected for this new order season which started two weeks ago. People are very carefull to buy raw material since many have problems in collecting their money from their own customers. It is said nobody would want to pay again the prices paid during the Shanghai fair. Prices for African wetsalted hides meanwhile have dropped to levels as low as 0.80 USD per kilo (up to 1.00 USD maybe for drysalted or dry) delivered China incl. all costs. When checking the African wetsalted hide prices in this report it becomes clear they are far below what sellers are still asking fob and excl. all extra charges, commissions etc. UNITED STATES: The kill last week dropped below the 600,000 mark and ended at 592,000. Slaughter is expected to stay in the 500,000 range for the coming weeks which include the Thanksgiving holiday. Especially the cow slaughter will continue to decline which may help in putting a hold on further price reductions. We should not forget however that supply had hardly any influence on prices this year. The future of US cowhide prices may depend far more on the exchange rate of the Dollar versus Euro, Pound Sterling, Brazilean Real, Argentinean Pesos and other currencies and alternative hide types available to tanners than on the supply situation in the USA. A major producer revised most of his wetblue sales prices. Although there are downward and upward changes most are up by 0.25 to 1.00 USD. CAR SALES IN CHINA: According to a recently published report China could overtake Germany as the world's 3rd biggest car manufacturer by next year. Sales in China are said to increase 13 percent this year to 5.6 million vehicles. Next year 6.4 million are expected to be assembled. UNITED KINGDOM/IRELAND: Hide prices in England did not really change over the last 2 weeks but in Ireland the heavier selections cost about 2 pence more. Good forward sales a few weeks ago to tanners who wanted to secure 'pre-dung-period' hides (dung covered hides reach their max. volume in January/February) coupled with lower kills has created some kind of artificial shortage which pushes prices up. Asking prices this means. I have no reports of higher prices actually paid yet. As said prices in the UK did not change but offers are few so the trend might be upward in the days to come. One of the reasons for the lack of offers is said to be some recent big sale to a well known tanner in Uruguay. Itla yis also mor active on upholstery selections and more than often requests prompt shipments. All in all it seems one can conclude that for the moment prices do not seem to come down in either the UK or Ireland. For UK lambskins the long awaited interest from China has finally arrived. We are talking fellmonger qualities for nappa production. For double face interest is still minimal from both China and Turkey, usually the big buyers of this commodity. Skin prices are firming. Prices for sheepskins have not changed and are typically lagging behind. BRAND, FOOTWEAR AND FASHION NEWS IN SHORT : ========== (find the complete stories on the subjects by clicking the Just-Style.com button at the bottom of the 'World View' - then click left centre on 'News' and 'Latest News' or 'Search the Archive' for previous articles). UNITED STATES: Military boot makers Wellco saw production slump due to a decrease in orders and a quality problem. ITALY: Luxury shoe and leather goods maker Tod's reported an increase in sales of 19 percent for the first 9 months of the year. 14 NOVEMBER: UNITED STATES: The higher prices made many buyers withdraw last week. Those who wanted hides had to pay the price but volume of business remained modest since there were not that many prepared to do so. Potential buyers also paid more attention to European hides which because of the higher US prices and the stronger Dollar suddenly became more interesting. This is also the reason why cows and bulls from America did not really enjoy more interest. These prices are still stable. For steers Packers in the US no doubt will now try once more to push through the 70 Dollar barrier (candf) for Heavy Texas Steers. This is not their first try this year and till now all previous efforts have failed. DOLLAR VERSUS EURO BUSINESS: The firmer Dollar (1.17 to the Euro)benefits the sale of European hides to Asia and also the sale of other non Dollar quoted material for which the currency moved in the right direction. Especially cow hides enjoy better interest. Prices are not moving up however. The rule of 'increase the price and lose your business' is still valid. But buyers are aware of the changes in exchange rates and realize it is worth their while to compare the different origins with more attention than a week ago. What was not interesting then may be interesting now. PORTUGAL: Hides - Demand from local industry is pretty good but rumours say it wont last much longer. Still most tanners, even those without full order books, have work enough to occupy their workforce. Hides which come on the market find buyers pretty quickly. This counts for all types except maybe heifers. Stocks of cow hides in traders' warehouses since some time are also quickly diminishing and bring interesting prices. Like elsewhere tanners buy but fight every try for higher prices. Exports finally remain the driving force behind the hide trade. Lamb skins - Market improved slightly. There is increasing interest even for lower qualities. Prices went up by 1/4 Euro! Good quality double face is traded between 7 -7,5 Euro (FOB). The kill remains very slow and will not improve before Christmas. CHINA: The changes in rules and regulations concerning the import of hides and skins announced in this report last friday are taking serious form and are now under discussion in the Central Government our source in China reports. The basic change is that new legislation may require importers of raw hides and skins to pay 5 percent import duty plus 17 percent v.a.t. UP FRONT. After re-export 13 percent v.a.t. will be refunded. The big changes are these: 1 - The present system allows for deferred v.a.t. payment. This means nothing has to be paid when importing. The difference between 17 and 13 = 4 percent is only due upon re-export. 2 - The trick was that many goods never physically left the country and that no tax was ever paid. 3 - The new rules will demand 22 percent more cash on the table on the day of importing the goods to finance the import duty (5 percent) plus the v.a.t. (17 percent. Who has that money? Which tanner can pay that? It is known that the banks are only tightening credits not expanding them! 4 - It is unknown how long tanners will have to wait before getting their 13 v.a.t. refund once the goods are exported. Some speak about 6 months. 5 - The objective of the government is to stop the cheating on taxes and duties and but also to avoid that tanneries move inland from the coast to avoid the strict anti-pollution rules in the coastal areas. Moving inland where control is less strict would probably mean polluting the rivers closer to the source and all the land downstream. Thus if we cannot control it, better to not import raw at all, the politicians must think. 6 - Hence the government directly or indirectly promotes imports of wetblue. But bluing in China costs 7 to 8 USD per hide while it costs around 12 Dollars in the USA for instance. Thus importing wetblue instead of raw will seriously damage China's competitive position in the world of tanning (that is why we wrote last friday that the new rule will be nice music in the ears of tanners outside China). 7 - If the Chinese Government indeed decides importing wetblue is the solution for their problems then who in the world has the capacity to tan all the hides China needs? Could it revive struggling tanning industries in Europe, Africa, South America? Maybe! That would not be bad! Of course things never work out the way they are logically written down. First of all no clear decisions have been taken yet. And if so, when will they become valid? But if even part of this becomes reality it is not going to help the tanning and leather goods manufacturuing industry in China. Losing part of its competitiveness could result in the loss of possibly milllions of jobs in China. And if the Government sees that happen would that not make them change their mind again? Everything is possible in that country. It is also clear that every new rule which costs money will lead to new tricks to avoid paying or to recuparate the new losses elsewhere. Already now people are talking about an increase un underinvoicing, downgrading selections-values, etc. But will everybody be prepared to do that? All have seen the increasing risks involved this last year(s) if one is caught. All in all interesting times ahead which could change the position of the entire Chinese leather industry and thus of the rest of the world. SUDAN: Hide prices have increased in Sudan while sheep and goats remained unchanged. The big problem is the revaluation of the Sudanese Dinar against the US Dollar which has reached 10 percent in the last two months alone. At steady export prices defined by the world market this means exporters get less money in their hands every day. NEW ZEALAND: Further confirmations about continuously dropping skin prices due to the very low price ideas the Chinese have for nappa. 'SAUER' GENERAL INDEXES : ======================== SHEEP - GOAT - HIDES WEEK 30: 107.1 - 98.6 - 116.2 WEEK 32: HOLIDAYS WEEK 34: HOLIDAYS WEEK 36: 107.4 - 98.9 - 117.4 WEEK 38: 104.5 - 98.5 - 116.7 WEEK 40: 103.6 - 101.4 - 116.9 WEEK 42: 104.4 - 102.9 - 117.0 WEEK 44: 103.3 - 102.0 - 118.1 WEEK 46: 95.3 - 102.2 - 122.1 WEEK 48: 95.2 - 101.8 - 122.7 'SAUER' UPHOLSTERY HIDE INDEX : ============================== WEEK 30 101.6 WEEK 32 HOLIDAYS WEEK 34 HOLIDAYS WEEK 36 101.9 WEEK 38 100.8 WEEK 40 100.8 WEEK 42 100.9 WEEK 44 101.4 WEEK 46 102.2 WEEK 48 102.1 PRICE GRAPHS : Please note that for hides and skins for which a price graph is produced in the online report, only one price (the average price) can be mentioned. For technical reasons no graph can be produced out of a price range. ADVERTISE YOUR COMPANY : You can advertise your company and services on this website. Three locations are available on the home page (or one three times the size). Further space is available under each country section. So if you trade in products from country 'X' then why not put up your name in the country 'X' section? Readers from all over the world will get your message! Advertising rates are published on the home page of this website. |
| Notes |
1) Abbreviation list at the end of the report.
|
| Price Graphs and Indexes |
| Price Graphs and Indexes | |
| Sauer Sheep Index |
 Index Graph |
| Sauer Goat Index |
Index Graph |
| Sauer Hide Index (ex. Calfskin) |
Index Graph |
| Upholstery Leather Hide Price Index |
Index Graph |
| Australian Wetblue Vic/NSW m/w ox/heifer 18/23 kg | Price Graph |
| Australian w/b hides NSW/VIC m/w, ex 27/31 kg/pce | Price Graph |
| Belgian w/s Cow/Ox/Heifer Hides, 28/32 kg/pce | Price Graph |
| Belgian w/s Bull hides, 31/41 kg/pce | Price Graph |
| Brazil w/b frigo hides, unsplit, grade A | Price Graph |
| Brazil Wetblue frig hides, unsplit, 44/48 sqft, C | Price Graph |
| Croatia w/s B.Beef hides, 30/40 kg/pce , i-ii, | Price Graph |
| Egyptian w/b Buffalo Hides, t/r, ex w/s 20 kg/pce | Price Graph |
| Finnish w/s Cow Hides, 17/+ kg/pce, 80/20 i/ii | Price Graph |
| France w/s cows 32/+ kg (all origins mixed) | Price Graph |
| France w/s bulls 35/45 kg (all origins mixed) | Price Graph |
| France w/s Calfskins, 12/+ kg/pce green, m/f , i | Price Graph |
| France w/s Double Face Lambskins, ex Ile de France | Price Graph |
| North German w/s bull hides 30/39.5 kg | Price Graph |
| North German w/s cow hides 25/+ kg | Price Graph |
| North German w/s Ox/Heifer Hides, 25/29.5 kg/pce | Price Graph |
| Iranian Pickled Sheep - 105/110 sqft - AB | Price Graph |
| Italian w/s Calfskins, -/16 kg/pce | Price Graph |
| Italian w/s Ox/Heifer Hides, 27/32 kg/pce | Price Graph |
| Kenya W/b goatskins , av 4.50-4.75 sqft/pce, | Price Graph |
| Kenya Wetsalted hides 12/16 kg i/iii | Price Graph |
| Dutch w/s Bull hides, m/f, av 32 kg | Price Graph |
| Dutch w/s Cow Hides, av 25 kg/pce, i/ii, m/f | Price Graph |
| New Zealand Pickled heavy sheep, run | Price Graph |
| New Zealand Pickled Lamb, Run Selection | Price Graph |
| Nigerian Wetblue goat skins, abc grades | Price Graph |
| Nigerian Wetblue Sheepskins, abc grades | Price Graph |
| S. Arabia W/b Sheep, Najdi, 80/85 sqft/dzn, t/r | Price Graph |
| S.Arabia w/b goatskins, 50/55 sqft/dzn, i/iv | Price Graph |
| South Africa w/b Hides, Corrected Grain , Medium | Price Graph |
| Spain, w/s ox 33/+ kg/pce Bilbao auction | Price Graph |
| Spain, w/s cow hides, 33/+ kg/pce Bilbao auction | Price Graph |
| Spain, w/s Double Face Entrefino Lamb skins | Price Graph |
| Sudan Pickled Goat, 3/5 plus 5/+ sqft/pce, ii/iv | Price Graph |
| Sudanese, d/s hides, 7/9 kg/ pce, i/i i | Price Graph |
| Swedish m/f cow hides, 17/+ kg/pce | Price Graph |
| Swedish m/f ox/hfr hides, 24-33 kg /pce | Price Graph |
| Swiss calfskins 12/15 kg, i/ii | Price Graph |
| Swiss w/s cow hides, 25/29 kg/pce, i/ii | Price Graph |
| Swiss w/s bull hides, 30/39 kg/pce, i/ii | Price Graph |
| Tanzania w/s Hides, 10/13 kg/pce, i/iii | Price Graph |
| U.K. Run Lamb | Price Graph |
| U.K. heavy ox 36/+ | Price Graph |
| U.K. Pickled Pelts, 4X1, 90/95 sqft/dzn, | Price Graph |
| USA Heavy Texas Steers, 60/66 lb dep. on season | Price Graph |
| USA Spready Dairy Cows | Price Graph |
| USA Heavy Native Steers, 60/66 lb dep. on season | Price Graph |
| USA, Packer Branded Steers, 60/64 lb/pce | Price Graph |
| USA Packer Heavy Native Heifers, 48/50 lb/pce | Price Graph |
| USA Packer Branded Cows, 48/50 lb/pce | Price Graph |
| USA Packer Native Bulls, 100/110 lb/pce | Price Graph |
| USA Packer Colorado Steers, 60/64 lb/pce | Price Graph |
| Argentina |
| Wetsalted Big Packer ox hides, Buenos Aires City and surroundings | |||||
| Untrimmed | |||||
| Kg/pce green | approx kg/pce w/s | selection | USD /kg wetsalted, local prices excl. charges and export tax | ||
| 27/28 | 21/22 | original run | 1.30 | ||
| 36/37 | 28/29 | 1.28 | |||
| Hides sold in greenweight but price per kilo salted weight. | |||||
| Local raw hide and skin prices at exchange rate 1 USD= 2.978 (11 November 2005) | |||||
| Type | grades | USD/kg | |||
| w/s Ox m/f | best | 1.17 | |||
| good | 1.13 | ||||
| fresh | 0.93 | ||||
| w/s Cow m/f | best | 0.85 | |||
| good | 0.82 | ||||
| fresh | NQ | ||||
| w/s Heifers-kips | best | 1.18 | |||
| good | 1.15 | ||||
| Dry hides | 0.77 | ||||
| Butchers | 0.77-0.84 | ||||
| Horsehides | 0.91-1.01 | ||||
| PRICES IN PESOS | |||||
| Dry sheep | cruza fina | 2.50-2.80 | |||
| corta y pelado | 1.60-1.85 | ||||
| borregos | 1.70-2.00 | ||||
| Bovine shoe crust | |||||
| ex kips/extremes | |||||
| Thickness | Av sqft/pce | selection | USD/sqft cfr/ori/c/off | ||
| 1.0-1.2 upto 1.4-1.6 | 16/18 | abc | drum dyed | nq | |
| natural | nq | ||||
| 1.2/1.4 mm | 16/18 | b/c/d | drum dyed | 1.85-1.90 | |
| natural | 1.65-1.70 | ||||
| c/d | drum dyed | nq | |||
| natural | nq | ||||
| d | drum dyed | nq | |||
| natural | nq | ||||
| d/e/f | natural | 1.35 | |||
| drum dyed | 1.55 | ||||
| Bovine upholstery crust in whole hides, dyed through | |||||
| 35/+ Sqft/pce av 47/48 | |||||
| Product | thickness | grade | USD/sqft fob/ori/c/off | ||
| Automotive | 1.0/1.2 | i/iv | 1.50-1.55 | ||
| iv/vi | 1.15-1.20 | ||||
| 1.0/1.2-1.4/1.6 | abc | nq | |||
| bcd | nq | ||||
| cd | nq | ||||
| d | nq | ||||
| Wetblue drop splits | |||||
| split in blue | |||||
| Kg/pce | USD/kg cfr/ori/c/off | ||||
| 4/6 | nq | ||||
| 6/8 | 1.35 | ||||
| 8/11 | 1.30 | ||||
| 10/14 | 1.30 | ||||
| Finished leather for furniture | |||||
| Whole hides, dyed through, Madras type | |||||
| Sqft/pce | thickness | selection | USD/sqft fob/ori/c/off | ||
| Av 47/48 | 0.9/1.1 mm | t/r | 1.00-1.05 | ||
| Finished leathers, indicative average prices | |||||
| Type | USD/M2 | ARS/m2 | |||
| Vaca sport | 30-31 | 90 | |||
| Vaca lisa | 28-29 | 85 | |||
| Napa calzado | 26-27 | 80 | |||
| Semianilina | 37-38 | 110 | |||
| Flor anilina | 43-44 | 120 | |||
| Vaquillona anilina | 42 | 115 | |||
| Becerro | 40-41 | 120 | |||
| Descarne gamuzado | 20-21 | 60 | |||
| Charol | 32-33 | 100 | |||
| Gamuzon | 28-29 | 85 | |||
| Suela liviana | 4.00-4.25 | 12/kg | |||
| Suela pesada | 3.50-4.00 | 11/kg | |||
| Ovinos badana | 13-14 | 40/m2 | |||
| Ovinos vestimenta | 20-21 | 60 | |||
| Ovinos muflon | 26-27 | 80 | |||
| Caprinos vestimenta | 32-33 | 100 | |||
| Cabritilla calzado | 37 | 110 | |||
| Gamuza | 30-31 | 90 | |||
Remark: |
| Australia |
| W/b hides Victoria / NSW meatworks | ||||||
| Ex w/s weight extremes | grades | USD/pce cif/ori/c/off | ||||
| 7/14 kg/pce | a/b 80/20 | nq | ||||
| 11/16 kg/pce | nq | |||||
| 14/18 kg/pce | 49.00-50.00 | |||||
| 18/23 kg/pce |
Price Graph
|
52.00-54.50 | av. price | 53.25 | ||
| 23/27 | 63.00-64.00 | |||||
| 27/31 kg/pce |
Price Graph
|
av. price | 68.00 | |||
| 31/+ | 70.00-74.00 | |||||
| 36/+ | nq | |||||
| NOTE: for selections with a price graph only an average price can be quoted instead of the usual price range (for technical reasons). |
||||||
| Pickled Kangaroo Skins | |||||
| defurred | |||||
| Sqft/pce | selection | EUR/pce cif/ori/c | |||
| 3/5 | t/r i/iii | 8.30 | |||
| 5/7 | t/r i/iii | 10.00 | |||
| iii | nq | ||||
| 7/+ | t/r | 13.00 | |||
Remark: |
| Austria |
| Wetsalted calfskins | |||||
| Kg/pce | selection | EUR/kg greenweight fte/ori/c/off | |||
| 8/12 | 70-30 i-ii | 3.45 | |||
| 11/15 | 3.50 | ||||
| Wetsalted cowhides | |||||
| Kg/pce | selection | color | EUR/hg greenweight fte/ori/c/off | ||
| 20/29 | 70/30 i/ii | black/white | 1.30 | ||
Remark: |
| Baltic States |
| Estonia, Wetblue cowhides, | |||||
| Sqft/pce | selection | thickness | USD/sqft fte/ori/c/off | ||
| 42/44 | 20/40/40 a/b/c | 1.2-1.4 mm | 0.80 | ||
| Wetblue whole bull hides, unsplit, 3.0/+ mm | |||||
| origin Estonia | |||||
| ex w/s kg/pce | sqft/pce | selection | USD/sqft cfr/ori/c/off | ||
| abc | 1.50-1.60 | ||||
| c | 1.20 | ||||
| 17/24 | 30/35 | d | nq | ||
| e | nq | ||||
| 24/+ | Av 30 | 40/40/20 a/b/c | nq | ||
| 24/+ | 44/48 | nq | |||
Remark: |
| Bangladesh |
| Goat crust | |||||
| Sqft/pce | selection | colour | tannage - mm | USD/sqft cfr/ori/c/off | |
| 2.5/4 | a/d | natural | nq | ||
| a/e | nq | ||||
| suede | nq | ||||
| nq | |||||
| 2.5/6 | a/d | nat. white/beige | f/c 0.6/0.8 mm | 1.30 | |
| a/f | 1.20 | ||||
| a/h | 1.10 | ||||
| e/h | 0.97 | ||||
| a/d | black/brown dyed | 1.40 | |||
| a/f | 1.30 | ||||
| a/h | 1.20 | ||||
| e/h | 1.07 | ||||
| 4/+ | a/d | black | f/c 08/1.0 or 0.9/1.1 | nq | |
| nat.white | nq | ||||
| a/h | nq | ||||
| e/h | nq | ||||
| Sheep/lamb crust, full chrome, | |||||
| 0.6/0.8 mm | |||||
| Sqft/pce | selection | colour | USD/sqft cfr/ori/c/off | ||
| 2.5/5.5 | a/d | natural white/beige | 1.65 | ||
| a/f | 1.55 | ||||
| a/h | 1.45 | ||||
| e/h | nq | ||||
| a/d | black/brown dyed through | 1.75 | |||
| a/f | 1.65 | ||||
| a/h | 1.55 | ||||
| e/h | nq | ||||
| Bovine crust in hides or sides, 10-22 sqft, | |||||
| Colour | tannage | selection | thickness | USD/sqft cfr/ori/c/off | |
| Natural/white/light beige | full or semi chrome | a/d | 1.2/1.4 mm | 1.30 | |
| a/f | 1.22 | ||||
| a/h | 1.15 | ||||
| d/e/f | 1.02 | ||||
| e/h | 0.95 | ||||
| chrome | a/d | 1.1/1.3 mm | nq | ||
| veg. | e/h | nq | |||
| Natural/light beige | veg. tanned | a/d | 1.2/1.4 mm | 1.33 | |
| Drum dyed (black/brown) | a/f | nq | |||
| a/h | nq | ||||
| Drum dyed(dark colours) | full chrome | a/d | 1.2/1.4 mm | 1.45 | |
| a/f | 1.37 | ||||
| a/h | 1.30 | ||||
| d/e/f | nq | ||||
| e/h | 1.10 | ||||
| semi-chrome | a/d | 1.1/1.3 mm | nq | ||
| Natural/white/light beige | full chrome | e/h shoe lining | 0.7/0.9 | 0.90 | |
| d/e/f shoe lining | 1.05 | ||||
| Drum dyed (dark) | full chrome | e/h shoe lining | 1.00 | ||
| d/e/f shoe lining | 1.15 | ||||
| Crust cow calf, 7/18 or 10/22 sqft/pce, | |||||
| For shoe upper | |||||
| Colour | thickness | selection | tannage | USD/sqft cfr/ori/c | |
| Natural white/beige | 0.8/1.0 mm | a/d | chrome | 1.35 | |
| a/f | 1.25 | ||||
| a/h | 1.17 | ||||
| d/e/f | nq | ||||
| e/h | nq | ||||
| g/h | nq | ||||
| Black/brown drum deyed | 0.8/1.0 mm | a/d | chrome | 1.50 | |
| a/f | 1.40 | ||||
| a/h | 1.32 | ||||
| d/e/f | 1.17 | ||||
| drum dyed through selections usually 10 cents more | |||||
| Buffalo crust in sides, 12/22 sqft/pce | |||||
| full chrome or veg. tanned | |||||
| Colour | selection | thickness | USD/sqft cfr/ori/c/off | ||
| Natural white/beige | t/r excludes grain damage | 1.4/1.6 mm | 0.80 | ||
| a/d | 1.2/1.4 mm | nq | |||
| a/f | 1.2/1.4 mm | nq | |||
| Black/brown drum dyed through | t/r excl. rejects | 1.4/1.6 mm | 0.95 | ||
| Natural white/beige | t/r lining | 0.8/1.0 mm | 0.65 | ||
| Belgium |
| Wetsalted hides, selection i/ii | |||||
| Auction prices in Brussels of 31 October per kilo greenweight | |||||
| Type | Kg/pce | PREVIOUS AUCTION | EUR/kg | ||
| Ox/cow/heifers | - / 27 | 1.22 | 1.22 | ||
|
Price Graph
|
28 / 32 | 1.21 | 1.22 | ||
| 33 / + | 1.16 | 1.18 | |||
| same but cesareans | - / 27 | 1.00 | UNSOLD | ||
| 28 / 32 | 0.99 | 1.00 | |||
| 33 / + | 0.99 | 1.00 | |||
| Bulls | - / 30 | 1.28 | 1.30 | ||
|
Price Graph
|
31 / 41 | 1.28 | 1.30 | ||
| 42 / + | 1.24 | 1.26 | |||
| NOTE: for selections with a price graph only an average price can be quoted instead of the usual price range (for technical reasons). |
|||||
Remark: |
| Belorussia |
| Wetblue hides, unsplit | |||||
| m/f | |||||
| Ex kg/pce | Thickness | Sqft/pce | Selection | USD/sqft fte/t/c/off | |
| 17/22 | unsplit | 25/50/25 ab/c/d | 1.00-1.05 | ||
| 50/50 c/d | 0.85-0.90 | ||||
| d | 0.80 | ||||
| 22/+ | unsplit | 15/60/25 ab/c/d | 1.05 | ||
| c | 1.00 | ||||
| d | 0.85 | ||||
| unsplit | c/d | nq | |||
| Often final prices are dicussed between sellers and buyers once hides are at destination and depend on quality. The above average prices are therefore no more than rough indications. | |||||
| Wetsalted meatworks hides | |||||
| m/f, | |||||
| Kg/pce | selection | USD/kg fte/ori/c/off | |||
| 10/16 | 80/15/5 i/iii | nq | |||
| 17/+ | nq | ||||
| 25/28 | bulls | 1.65 | |||
| Often final prices are dicussed between sellers and buyers once hides are at destination and depend on quality. The above average prices are therefore no more than rough indications. | |||||
| Botswana |
| BMC (Botswana Meat Commission) hide tender, | |||||
| latest tender prices (June 2005) | |||||
| Weight range | selection | USD/pce cfr/ori/c | |||
| Xlights | i | 15.90 | |||
| Lights | i | nq | |||
| ii | 27.80 | ||||
| Lights+Med II + Heavies II | nq | ||||
| Medium | i | 35.70 | |||
| ii | 35.70 | ||||
| i+ii | nq | ||||
| Heavies | i | 40.00 | |||
| ii | 39.00 | ||||
| XHeavies | 41.60 | ||||
| Thirds | nq | ||||
Remark: |
| Brazil |
| Cabretta crust, | |||||
| Sqft/pce | thickness | selection | USD /sqft | ||
| 4/6.5 | 0.6/0.8 mm | 10/20/40/30 i/iv | 1.70 | ||
| 6.5/+ | 0.8/1.0 mm | 10/20/40/30 i/iv | 1.80 | ||
| W/s cattle hides | |||||
| Origin | kg/pce | selection | flay | USD/kg cfr/ori/c | |
| North | av 25 | t/r | m/f | 1.00 | |
| h/f | 0.90 | ||||
| Central frigorifico | 27/32 | original | m/f | 0.92-0.95 | |
| Matadouros | 24/28 | t/r | h/f | 0.78 | |
| Wetblue drop splits, whole hides, untrimmed, ex original frigorofico lots, t/r | |||||
| Split in wetblue | |||||
| Av Kg/pce | av thickness | sqft/pce | USD/kg cfr/ori/c/off | ||
| 7/9 | 2.5 mm | av 37 | 0.70 | ||
| -/8 | 36/40 | 0.75 | |||
| 8/+ | 40/45 | 0.80 | |||
| 9/13 | 3.0 mm | av 42 | 0.78 | ||
| 13/16 | 3.5 mm | av 44 | 0.83 | ||
| prices depend a.o. on the percentages of humped and humpless material | |||||
| Wetblue frigorifico whole hides, m/f, 36/+ av 44/48 sqft, unsplit | ||||||
| Selection | nr of panels | USD/sqft cfr Asia/ori/c/off | ||||
| t/r | 4 | 70% humpless | nq | |||
| t/r1 or Italian t/r | 4 | 1.05-1.15, also 1.00-1.05 spot Italy/t/c | ||||
| t/r2 | 3 | 0.93-1.00 | ||||
| t/r3 or economic I | 0.69-0.86 | |||||
| Econoimic II | nq | |||||
| a |
Price Graph
|
av. price | 1.39 | |||
| b | 1.26 | |||||
| 50/50 a/b | 1.33 | |||||
| 30/40/30 a/b/c | nq | |||||
| 50/50 b/c | 1.18 | |||||
| c |
Price Graph
|
av. price | 1.10 | |||
| 50/50 c/d | 1.07 | |||||
| d | 1.03 | |||||
| e | 0.54-0.86 | |||||
| e/rejects | 0.55 | |||||
| f | 0.69 | |||||
| d/e | 0.95 | |||||
| d/e/f | 0.86 | |||||
| The above is a collection of offers from various shippers. Dont look for logic between the quotations. There isn`t. The weight of the whole hide is taken into consideration because of the drop split it will | ||||||