In a market that was already struggling, the drop in demand for split hides represents the final blow for Wenzhou’s tanneries. The progressively lowering price of split hides has created wide differences in the value of the stock in the warehouse and the current going rate. Differences, says the International Leather Maker, proving fatal for many companies.
Wenzhou’s tanneries closing down
The reason behind the concerns is tied to the disappointing returns of split hides. Week after week, writes ILM, the price of the material drops further and further, thus making already selected items lose their value during the tanning process. Local tanneries work on volumes and not niche amounts (such as European tanneries), and thus find themselves struggling.
Within the Wenzhou region, which is tied to the upholstery segment, only a few tanneries have managed to remain open, but these enterprises are trying to sell stock and even machinery. Businesses in Hebei, meanwhile, are finding better conditions with suppliers, even though suffering from unfavorable exchange rates.
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