Raw materials


Colorado steers 60 –


50 – 40 – 30 – 20 – 10 – 0


1020304050 Weeks


Dairy cows 45 –


35 –


2021 2022 2023


25 –


2021 2022 2023


them to keep the market stable. However, that is as good as it got. In general, overall leather orders, especially for mass market footwear, were not at the levels they should be. Although US cattle slaughter was expected to decline, updated forecasts were a little higher. Good supply kept some selections under continued pressure. Like most leather sectors, business for the automotive destination has not panned out as expected so far in 2023. In the early part of the year, it did a little better than anticipated in the North American market but that Q1 bump did not last into the second quarter.


Sources expected Q2 business to be flat or slightly decreased, which it appears to have been the case. Beyond that, most projections are flat for the rest of the year, especially in the US where economic conditions will continue to have an effect on demand.


15 – 5 – 0


1020304050 Weeks


Heavy native heifers 50 –


40 –


2021 2022 2023


30 –


Of course, the perspective you get on the auto leather market depends on who you ask. If a company happens to be producing leather for a model that turns out to be a hot seller, then the outlook is stronger than for those who are not. In years past, the hide selections used for automobiles were generally the most stable and highly priced. They helped drive the strength of the overall market, but that may not be the case in 2023.


The cow sector had a rough spring, with prices again having approached the barely break-even point. Branded cows were at prices low enough that, in many cases, hides were sold to the gelatine market or processors were going to charge producers to pick them up. Fortunately, demand picked up a bit and sellers were able to stabilise the market.


20 – 10 – 0


1020304050 Weeks


Heavy native cows 40 –


30 –


2021 2022 2023


20 –


When it comes to wet-blue, it was still being sold at a discount to cured hides. Global supplies are high everywhere and prices are low. In fact, in June, some US producers who typically turn heavy Texas hides into wet-blue opted to sell raw hides instead, given the poor demand and prices for wet-blue.


The bottom line for the industry is that China needs to get back on a better economic footing. It’s not news that China’s economic recovery is sputtering. On top of this, the dollar/RMB exchange rate has made it more expensive for Chinese customers to buy US hides, even at the current cheap prices.


10 – 0 – 0


1020304050 Weeks


August will bring the usual Italian tannery closures and European vacation season – though substantial change doesn’t typically happen during this period. It’s difficult for most to pinpoint anything that will change enough to move the needle upward in the hide market over the next month or two. ●


20 Leather International / www.leathermag.com


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