Reporting from home base in sizzling Arizona and sitting in front of a poster of the company his grandfather founded in 1891, Hidenet publisher Don Ohsman notes that hide prices in Europe remained steady this last week. There were signs of Chinese interest but not enough to push prices higher. As usual, demand for top quality calf skins was high and we understand that they are still being sold on an allocation basis to existing customers.
Footwear demand for leather remains slow but automotive demand is still buoyant keeping North German bull prices firm.
The main news from South America was that JBS was allowed to sell its packing operations in the Southern Cone to raise funds. Brazilian wet blue, full substance TR1 (23 kg) traded again at US$1.15 but expectation of increased hide supplies pushed bids lower to the US$1.10 – US$1.12 region.
In North America, Texas steers fell by US$1 but other selections remained firm but in thin volume. Since this is the quiet time of year for leather orders tanners are holding off buying raw materials in the expectation that prices may fall or just drift lower.
Don notes that benchmark Texas steers have fallen by 17% since the end of APLF Leather in Hong Kong at start April and by the time ACLE comes round in six weeks prices could be very attractive for both Chinese buyers and European tanners coming back from their traditional summer break.
Here is this week’s complete report: