Lineapelle - 22-24 April - Market Trends - 1st Quarter 2008 - Slackening and expectations
PRICES OF RAW HIDES AND SKINS
A drop of almost even intensity (-5% on the previous quarter) has been recorded in the prices of the various types of bovine hides and skins. It must be noted though, that few important suppliers (France, USA, UK) have marked an upward trend in the month of March. It is possible that speculative buying, adjustments prompted by exchange rates, or anticipations of a recovery of certain segments by large dealers may be contributing factors of this evolution. In the year-on-year comparison for the quarter, the fall of cow hides (-20%) has surpassed that of bulls'.
The increasing trend of raw sheepskins seems to loose steam in the first quarter 2008 (+2,8%), largely due to the mild rise of prices in Iran and New Zealand if compared with those of previous quarters. No changes reported for goat crust. Average prices of sheepskins and goatskins are actually 30% higher than one year ago.
SUPPLIERS
In the tanning sector the seasonal production of bovine leather has maintained a downward trend, while data on light leathers have shown a fall for calves and a recovery for sheep and goats. On the other hand, all the typologies have recorded losses if compared with the last months of 2007 (excluding sheep leather, stable). The expectations of the exhibitors on next quarter result to be cautiously optimistic.
As regards the other intermediate sectors, accessories have exhibited a slight rise, hiding a clear difference between high range (on the rise) and medium range (in difficulty). Considerable decrease for textiles and synthetics, while soles and bottoms have remained stable in the seasonal comparison and shrink in the short term.
CUSTOMERS
During the first quarter 2008, the overall footwear production has showed a moderate annual increase and a general stability in the short-term comparison. Slight decline for Italian manufacturers, while the rest of Europe has kept the pace.
Leather goods industry still on a rising trend, with a particularly brilliant performance of Rally. Some slackening in the short term.
In the garment sector the situation is strongly differentiated: satisfying results for the Italian top range, production decreases (with few exceptions) for China and the rest of Europe.
Widespread fall for upholstered furniture in the EU (including Italy) and negative signs coming also from Chinese market. Problems are still alive for US retail sales and consumption.
Press release
Lineapelle