The stocks of material that have built up along the leather pipeline over recent months are “the biggest headache” for the leather industry at this moment in time, according to the latest edition of the Leather Pipeline market intelligence report.
It says this is even more of a problem than the continued imbalance between supply and demand, which has resulted in hide prices falling dramatically.
“It is frightening to think what might happen to the huge inventories of wet blue and crust that are sitting stranded in so many places around the globe,” the report states.
Despite high leather consumption by leading luxury brands and positive signs from the automotive sector, the demand for leather is still not enough to digest the total supply of raw material being produced globally. This means no dent is being made in the stocks of material that have been accumulated at different points in the pipeline.