The consequences of the 3rd wave hit all while the wounds from the first and second waves were still open. The period January-March was “negative all-around for the manufacturing indexes of tanneries, with decrements often in the double-digits”, reads the note from Lineapelle’s Economic Service. Yet, some positive elements do emerge.
The consequences of the 3rd wave
As already stated, and reiterated by UNIC – Italian Tanneries, the 1st quarter of 2021 saw a trend of “strong price increase all over the chain, with respect to raw hides and semi-finished pieces: the few exceptions are, anyway, just stable”. In Italy, meanwhile, the trend for finished leather is also negative. Medium-large bovine pieces recorded a performance of -8%, small bovine ones -7%, ovine -20%. The negative trend mainly has to do with Europe: Germany lost 10.5% on average on bovine hides, Spain -18% on ovine hides and France -18.3% across all categories, on average. The only positive signals include: medium-large bovine pieces at +2% compared to the 4th quarter of 2020, while with regards to geographies Brazil and Mexico were in the positive zone.
Segments’ performances
Lineapelle’s Economic analysis ( which can be found here) highlights the destination uses for hides. Sadly, the context is not easy, and just as complex is the trend for accessories and components. The big losses include all EU manufacturers (-16%) – reads the note -. Small metal accessories also struggle to regain ground, due to the challenges in Italy and France. The accessories’ segment is beginning to balance the losses, but it’s still negative”. Textiles and synthetics’ manufacturers struggle all the same: the performance for Europe is -9%.
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