9 February 2022

We published a new edition of Leatherbiz Market Intelligence on February 8, with our exclusive fortnightly Leather Pipeline report on the situation in the global industry.

Among the important insights in this report is the affirmation that, in our uncertain world, leather manufacturers who can react quickly and rely on an intact local value chain (from raw material sourcing to finished product manufacturing) have an advantage.

It goes on to point out that the industry in China is “a special case”. The report explains: “Heavily dependent on raw material imports and exports of finished products, decisions are particularly difficult to make in China at the moment. On the one hand, the uncertainty of delivery times for raw materials, especially from the US, is a burden, and on the other hand, no one can be completely sure that finished goods will be ready to reach the export markets in time.”

It compliments China’s leather manufacturers, saying that they have long managed the raw material supply and finished leather exports in cycles, judging the best times to buy raw material in large volumes and working efficiently to make sure finished leather and finished consumer products were ready to meet seasonal demand.

But it now faces a particular challenge, Leatherbiz Market Intelligence warns: this cycle has been extended by at least 60 days compared to the time before the pandemic and the logistics delays that have beset global markets in the 2020s . The result is greater uncertainty for everyone involved.

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