THE WEEK IN REVIEW

Here we are after a small vacation period during which nothing big happened anywhere but at the same time the market did not stop. Maybe for a couple of days but questions about prices and inquiries about offers took place within this short period of time also.

Most prices were preserved at their last level as there is one thing that is not possible to deny: There is simply not enough hides for everybody.

We can watch the American hides, how prices did not fall more than what it did before holidays. On the way around, it seems prices are a bit stronger on this overture of the year.

Is this the real market or positions that traders are taking (as usual at this time of the year…) ? Nobody knows yet.

But one thing is for sure, there is no sign, at least for the time being, that we are about to see an accelerated decline of prices everywhere.

Contrary to what some might say, there are no stocks everywhere and the very scarce quantity of hides worldwide doesn’t allow prices to fall that much unless the whole world would stop completely to produce any kind of articles made by leather, which is something rather improbable.

In Brazil the market did not start at 100% yet. Most probably we will be looking at the first steps during the next week.

RAW HIDES

Small adjustments happened, but nothing that changes the final prices yet as they come from the last week of last year.

This is the tone everywhere.

WET BLUE & CRUST

So far there are no alterations in final prices (wet blue, crust or finished). Maybe in finished leather in some cases as the selection can be adjusted depending on the finishing and the “make-up” you can apply to the leather to obtain a very similar effect or lay-out.

MARKET PRICES

(We understand readers know the difference of selections among different origins when the name is the same, for instance TR1. Each origin has a different grading and means a total different standard from each other).

Prices in Brazil

Click on chart to view underlying data.

Wet blue, whole hides, machine flayed, full substance, average 48/52 ft, average 23 kg

Selection TR1 at around $ 1.40/ft CFR.

Selection TR2 at around $ 1.30/ft CFR.

In sides, we can say that prices are about these:

	substance 2.4/+ mm
selection B	$ 1.50
selection C	$ 1.40
selection D	$ 1.30
selection E	$ 1.10

The crust leather for upholstery, in substance 0.9/1.1 mm, in sizes varying from 48 to 56 ft:

$ 1.45/ft CFR for selection TR1

$ 1.35/ft CFR for selection TR2

The automotive upholstery leather, in substances 1.1/1.3 to 1.2/1.4 mm, stucco and buffed, at $ 1.50/ft CFR for selection TR (in which real selection is giving the tone of the final price, and this depends on the customer’s acceptance and/or real requirement).

Prices in Argentina

Click on chart to view underlying data.

The crust leather for automotive upholstery, in substance 1.1/1.3 to 1.2/1.4 mm, has been sold at levels like $ 1.65/ft CFR for material that can either be stucco and buffed for the most requiring customers.

For shoes, in substance 1.2/1.4 mm, natural/not dyed, prices have been:

TR1 - $ 2.45/ft CFR

TR2 - $ 2.10

TR3 - $ 1.90

Everything below is considering the usual brine cured, no bulls. Range weight for salted is 14-19 kg and for fresh hides is -/24 kg.

Please note these are the average prices, so it might happen someone is paying more (for the higher end) or less (for the lower end) depending on the region.

(According to “La Lista” released by Menendez & Echeguia)

Buenos Aires / Mendoza

Steers	$ 1.17
Cows	$ 0.95 in average
Heifers	$ 1.17

Prices in Uruguay

Crust for upholstery, substance 0.9/1.1 mm, stucco and buffed, selection TR2 at $ 1.65/ft CFR.