Hide price talk at APLF1 April 2011
As the APLF in Hong Kong drew to a close on April 1 the hottest topic among tanners was concerning the high prices of raw materials. The most happy people at the three-day show were the hide and skin suppliers who have been able to continue to sell at record high levels. With US salted hide prices around $80 each many people were wondering if and when there will be a crash. 'We cannot pass on the additional cost of the raw hides to our customers', Richard Pai, CEO of Joinland Tanning Group, Taiwan, Told Leather International. 'I am going to talk about lifting my leather prices a little with my customers if hide prices to continue rise. There is little profit at the moment,' he added.
However, most people who Leather International spoke to at the show feel that demand, particularly from China, for leather products will mean that the high raw material prices are here to stay, at least for the next few weeks. Then prices are predicted to lower slightly but we won't see a crash as happened in 2009.
The APLF this year covered 25,000 sq m with 1,235 exhibitors from 51 countries. Hall 1 of the show was largely occupied by the leather, raw materials and chemical and machinery supply companies. Hall 3 housed finshed product makers under the Fashion Access trade show name. Pakistan was the focus country this year and an estimated 18,000 visitors came from all over the world. Many exhibitors said they had seen fewer visitors than in 2010 and the show was a little quieter.
There were a number of new intiatives and events over the course of the show including a dinner to discuss the Leather Naturally! campaign and a debate between producers of leather and synthetic materials which was attended by more than 100 people.
More details on the APLF and the various events to follow.