The latest issue of our Market Intelligence newsletter went to press on April 5 and is available to subscribers on the Intelligence section of the website, writes Leatherbiz
As always, the newsletter analyses the situation in the global leather value chain and, this time, also reviews the APLF exhibition, which took place in Dubai from March 30 to April 1.
Its conclusion is that planning, even for the near future, is going to be very difficult for most in the industry, principally owing to the war in Ukraine, rising costs, ongoing covid-19 restrictions in China and the uncertainty all of these factors are creating.
“It is important to remember that we are at the end of the winter half-year,” the report says, “with its high production levels. A large number of leather factories are currently having to deal with the situation that their costs have risen considerably and at the same time they still have to supply old contracts that were concluded under different conditions.”
This is affecting margins, but much more importantly, Market Intelligence points out, it makes pricing for next season more difficult than usual. It says price increases for finished leather and, therefore, leather products will be necessary. It remains to be seen what effect this will have on demand.