Extracts from the Hidenet World Report

15 April 2015


BA ox sold at $1.74-1.80, down $0.06 from the previous week. Crust prices were steady but spits softened.


The United States Department of Agriculture (USDA) released a report on production forecasts of beef in Argentina for 2015. In this report, compared with previous forecasts, the department lowered expectations by 150,000t - 2.7 million tons of beef is expected to be produced by the end of year. The main reason behind this forecast is the lower kills; estimated to be 12.3 million head, which is 600,000 head less than the previous report.



A-grade wet-blue ox were offered into Italy at $92.00 for 23/27kg - down $1 from the previous week. 18/23kg B grades were available at $77.75 - also down $1 from the previous week. $66.00 was offered into Italy at 14-18kg C&F.



Due to reduced slaughter, green prices have risen and, with it, tanners insistence on $1.75/ft2 CFR.


FIMEC closed recently with mixed results. Organisers said that the fair was a success with 14 leather-processing companies exhibiting in Novo Hamburgo. During FIMEC 2015, a meeting of the CICB board of directors also took place, where the entity's strategic plans for 2015, and the Brazilian and global macro-economic situations were evaluated. Making the most of the great public presence at the event, CICB also promoted the Blitz do Couro (Leather Blitz) project at a special exhibition space.



An influential leather industry figure has asked the Chinese People's Political Consultative Conference (CPPCC) to press for lower duties on imported raw hides. Professor Shi Bi, a prominent academic in leather chemistry and engineering at the University of Sichuan, and former president of the International Union of Leather Technologists and Chemists Societies (IULTCS), and judge for the Tannery of the Year competition, was elected onto the CPPCC in 2013.


He made a speech calling for lower duty on imports of raw hide at the 2015 conference of the CPPCC in Beijing in March, saying that the high cost of importing raw material was hurting the profitability of Chinese tanners and finished-product manufacturers. This, he argued, was holding back Chinese companies' efforts to build up their own brands. Shi said that establishing strong brands is one of the aims of the Chinese leather industry.



34 and up hides were seen in and around €2.75 for the Finnish. The quantities produced are in line with the previous week.



Sales were limited as Bretagne origins sold between €4.90 and €5.10/kg NIT. The best selections of the central regions have found buyers willing to pay around €5.50/kg after some discussion and increasingly careful selections to be sure about the quality requested by top luxury brands. In general, the market has slowed down.


37kg and down bulls were quoted at €2.45-2.55 NIT and 37kg and up at €2.20-2.35.



Northern German bulls were reported at €2.05 for 40 and up, and were offered as high as €2.30-2.35 NIT for 50 southern German.



India's Council for Leather Exports (CLE) held a press conference in Hong Kong on 30 March to discuss details of the 19th UITIC (the International Union of Shoe Industry Technicians) Congress, which it will host next year. The press conference took place on the opening day of the APLF exhibition. Chennai will be the venue of the congress, which the CLE will host on behalf of UITIC 3-5 February 2016. The main theme will be to discuss what the footwear factory of the future might look like.



Wet-blue whole hides 18ft2, averaging 24/28ft2 20/40/40% I/II/III were heard at $1.05/ft2 C&F. This was steady to early March; 28+ 30/33ft2 could be bought at $1.15/ft2 IB 20/40/40% 1/22/111 C&F, were also steady to last.


Wet-blue goatskins averaging 60/65ft2 a dozen selection 20/40/40% TR/IV/V were at $52/dozen C&F. This is down from $60 three weeks previous.


Wet-blue sheepskins averaging 60/65ft2 a dozen selection 20/40/40% TR/IV/V were offered at $42/dozen C&F, down from $50 early in the month.



Wet-salted Madagascar hides 14/16kg a hide 70/20/10% I/II/III were offered at $1.65/kg C&F.


Dry-salted Madagascar hides 9/11kg a hide 70/30% I/II were offered at $2.65/kg C&F.



Air-dried Mauritania hides 8/12lb a hide 80/20% I/II could be had at $2.45/kg C&F.



The governor of the Mexican state of Guanajuato, Miguel Márquez, has said the local leather and footwear industry has "a permanent ally" in his administration. Speaking at the Sapica exhibition in León on 17 March, Márquez said leather and footwear were industries that mean a great deal to Guanajuato and that the state government would always seek to defend them.


New Zealand

34+ wet-blue 80/20 ox were offered at $117 and 27kg+ were available at $112; 24-27kg were at $102, all C&F main ports. All were down $1 or more from a week previous.



34+ hides were seen at more than €3 for the Norwegians. The quantities produced are in line with the previous week.



Following success in the Dominican Republic, where the arrival of Taiwanese-owned footwear manufacturing groups helped boost shoe exports by more than 10% in volume in 2014 and increase footwear manufacturing jobs by more than 20%, shoe firms from the Asian country could now be preparing their entry to another Latin American market, Paraguay.


A delegation of 19 business leaders from Taiwan carried out a three-day tour of Paraguay in mid-March, which included meetings with the president, Horacio Cartes. Official reports said footwear was among the industries represented. Paraguay has the strongest diplomatic ties to Taiwan of any country in South America, an expanding cattle herd, a growing beef industry and a number of established tanneries.



The Obuv Mir Kozhi fair was held in Moscow with the participation of the leading shoe manufacturers that sell in the Russian market. The first results are negative. Buyers have reduced purchases and tend to buy based on the necessity. This prudent approach reduces the revenue from prepayments to companies. At Obuv, the winter season was presented - the most important for the use of quality leather - and this is a further element of concern for the tanneries specialised in leather for footwear.


According to the Resolution of the Council of Ministers of the Republic of Belarus, on 13 March 2015, the exportation of raw hides and skins of bovine (heading 4101 of the Commodity Nomenclature for foreign economic activity of the Eurasian Economic Union) outside the customs territory of the Eurasian Economic Union is temporarily banned from 16 March 2015 until 16 September 2015. The Resolution was officially published in Russian on the National Legal Internet Portal of the Republic of Belarus on 18 March 2015.



Dry-salted goatskins averaging 1.00/1.50kg 4/7ft2 averaging 5.0/5.5ft2 selection 80/20% I/II could be bought at $2.35/skin C&F.


Dry-salted sheepskins averaging 2.00/2.50kg 4.5/8.0ft2 averaging 6.0/6.5ft2 selection 80/20% I/II were quoted at $3.55/skin C&F.


Air-dried Senegal hides 8/12lb a hide 80/20% I/II were seen at $2.85/kg C&F and wet-salted Senegal hides 13/15kg a hide 70/20/10% I/II/III were offered at $1.45/kg C&F.



Entre Fino double-face was available at €14.00-15.00 and Entre Fino nappa at €18.50-18.75. Marino doubleface was quoted at €13.50-14.00 NIT.



Available statistics show that Tanzania is second in Africa with the largest number of livestock, having the potential to produce at least 4.0 million hides and around 6.1 million skins annually. But low investments in value addition in the leather industry have undermined the much-needed government revenues and associated benefits like job creation, where around 90% of exports in the sector are raw hides and skin.


Records show that export earnings from the leather sector have, in recent years, increased at an average of 22% - an indication that the industry is operating below capacity. Also, the pervasive smuggling of raw hides and skins is complicating the endeavours geared towards boosting the sector's prominent place and contribution to economic growth.


In a study conducted by the United Nations Industrial Development Organization (UNIDO), the lowest footwear consumption is in Africa, with 0.5 pairs per person annually and the highest is in the US with 7.1 pairs per person annually.


According to the study by UNIDO, there is an anticipated shortage of raw hide and skin, which suggests that there may be a shortfall of 2.4 billion pairs in the world market by the end of 2015.



English ox traded at £1.73 on the selections 36+, £1.83 on intermediate categories and £1.93 on light selections, all NIT.



Benchmark heavy Texas steers traded in comparatively low volume at $103 C&F on 62/64lb. Butt-branded and heavy native steers sold fairly much on a par at a C&F basis of $109-110, essentially steady to the week previous. Cows were firm but also generally steady.

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