Tanners in no mood to buy

Prices across most major US selections remained steady or declined slightly as tanners stayed out of the market during the early weeks of March. Many were sitting on inventories of hides awaiting orders following the major fairs. A lower slaughter also failed to lift prices for tanners as many stayed out of the market and waited for orders from their own customers. Packers were awaiting results of the major shoe fairs hoping that tanners would order more hides following orders from their customers. However, reports suggest that the GDS footwear fair in Germany was disappointing overall but the Micam show held in Milan a week later was more positive. According to figures released by the Italian footwear association, ANCI, Italian footwear exports fell 4.4% for the first nine months of 2003 compared with a year earlier. Around 82% of the sector reduced their output last year yet the average price of Italian produced footwear rose 2.3% domestically and 2% in export markets. The recent edition of Micam may give the Italian footwear industry a much needed boost. Additionally, the continuation of a strong euro versus the dollar will not help. Nike, the international sports brand, reported a 61% increase in quarterly income with sales up 21% and orders up 10%. The highest increases were seen in Asia, Europe and the US. Favourable exchange rates were given as a significant reason for the positive results. It is anticipated that a high number of hide traders will be heading off to the APLF in Hong Kong at the end of March hoping to pick up business. At the moment, it appears to be a buyers' market so many tanners can expect queues of traders on their stands. Federal Inspected Slaughter (FIS) averaged 618,250 head for the four-week period ending March 21. This compares with 643,000 for the same time last year. On average, 25,000 less cattle are being slaughtered or 4% less than in 2003. China was once again the major export destination of US raw hides taking 682,200 for the first four weeks of March. If you add to this a further 57,900 to Hong Kong, the full amount was approximately 740,100 hides. As usual, South Korea was the second largest buyer over the same period accounting for 659,000 hides. Other major buyers of US wet-salted material during March were as follows; Taiwan (216,800), Japan (89,100), Thailand (64,900), Mexico (60,900), Italy (13,800), South Africa (10,600), Canada (9,100), Dominican Republic (8,600), Türkiye (7,800) and the Netherlands (2,000). Sales of wet-blue averaged 104,925 over the same four weeks. Most sales were to Hong Kong (and then presumably on to mainland China), South Korea, Italy, Mexico, Thailand, Dominican Republic, Japan and Indonesia. The second week of March saw higher than average wet-blue exports of 149,000. Exports of wet-blue splits started slowly at the beginning of March with only 88,400lb recorded. However, sales rose slowly throughout March steadily increasing to 1,590,000lb during the week ending March 21. China took 703,900lb for the week ending March 14. Italy took nearly the whole weekly total for the week ending March 21 when the country's tanners and traders bought 1,250,000lb.