Raw material costs raise European leather prices

During the last COTANCE council meeting held in Lausanne (Switzerland) in November under the presidency of Jean-Claude Ricomard (Tanneries Roux, France), the representatives of the leather industry from France (FFTM), Finland (FLIA), Germany (VDL), Italy (UNIC), the Netherlands (FNL), Spain (CEC-FECUR), Sweden (SG), Switzerland (VSG) and the United Kingdom (UKLF) expressed concern with regard to the trends witnessed in raw material prices. On the basis of market intelligence regarding slaughterings, Cotance members do not see any reason for the rise in raw material prices. These should be rather decreasing. Considering the information provided by all members present and notably an analysis tabled by UNIC, the Italian leather industry association, on the average variations recorded for the various types of hides & skins on the main markets between Jannuary 2005 and today with a special focus on the developments in the current year price increases are considered injustified. The increase in prices evidenced affects significantly all major categories with peaks for calfskins of European origin and wool-on sheepskins of the better grades. The difficulties of European tanners to convey to their customers the importance of the phenomenon weakens their capacity to maintain profitability. Finished leather prices are thus bound to rise between 2-14% according to the reference raw material used. A recent survey on expectations on leather prices that was made among visitors at the last Lineapelle fair confirm this trend. During the last COTANCE council meeting held in Lausanne (Switzerland) in November under the presidency of Jean-Claude Ricomard (Tanneries Roux, France), the representatives of the leather industry from France (FFTM), Finland (FLIA), Germany (VDL), Italy (UNIC), the Netherlands (FNL), Spain (CEC-FECUR), Sweden (SG), Switzerland (VSG) and the United Kingdom (UKLF) expressed concern with regard to the trends witnessed in raw material prices. On the basis of market intelligence regarding slaughterings, Cotance members do not see any reason for the rise in raw material prices. These should be rather decreasing. Considering the information provided by all members present and notably an analysis tabled by UNIC, the Italian leather industry association, on the average variations recorded for the various types of hides & skins on the main markets between Jannuary 2005 and today with a special focus on the developments in the current year price increases are considered injustified. The increase in prices evidenced affects significantly all major categories with peaks for calfskins of European origin and wool-on sheepskins of the better grades. The difficulties of European tanners to convey to their customers the importance of the phenomenon weakens their capacity to maintain profitability. Finished leather prices are thus bound to rise between 2-14% according to the reference raw material used. A recent survey on expectations on leather prices that was made among visitors at the last Lineapelle fair confirm this trend.