According to the analysis, in the next few weeks, four factors will affect the leather trade and the leather industry.
1. The price of U.S. leather keeps rising.
2. As a result of the sluggish meat business, the slaughter volume in many countries has decreased.
3. The US dollar weakened against the euro and some other currencies (from 1.26:1 to 1.31:1).
4. The real cold winter climate in Europe and North America suddenly appeared.
US sellers have been using all means to keep the market from climbing since December and are currently pushing up prices. The slaughter volume data is low, the supply is reduced or there is no quotation at all, and the seller firmly refuses to consider the counter-offer and the sales situation is favorable. According to sales data for January, not all have been successful. Sellers found that further support from China’s new interests was earlier than expected.
The poor profitability of meat business owners is the reason for the decline in slaughter. In the first few weeks, it has fallen by 50,000 a week. This week's preliminary estimate will drop again and it will fall to between 600,000 and 595,000. The slaughter of cows and bulls is also declining. The amount of live cows in the United States has continued to decrease. From 2010 to 2011, the number of live cows decreased by 91 million, a decrease of 2%.
Although consumer confidence has started to improve as consumer incomes have begun to rise, official data for December show that people are more cautious about spending because of lessons learned, and that most of the new income goes to debt service and savings. They are no longer spending as much as they used to. The improvement of consumer confidence certainly does not indicate an increase in the consumption of leather products.
1. The price of U.S. leather keeps rising.
2. As a result of the sluggish meat business, the slaughter volume in many countries has decreased.
3. The US dollar weakened against the euro and some other currencies (from 1.26:1 to 1.31:1).
4. The real cold winter climate in Europe and North America suddenly appeared.
US sellers have been using all means to keep the market from climbing since December and are currently pushing up prices. The slaughter volume data is low, the supply is reduced or there is no quotation at all, and the seller firmly refuses to consider the counter-offer and the sales situation is favorable. According to sales data for January, not all have been successful. Sellers found that further support from China’s new interests was earlier than expected.
The poor profitability of meat business owners is the reason for the decline in slaughter. In the first few weeks, it has fallen by 50,000 a week. This week's preliminary estimate will drop again and it will fall to between 600,000 and 595,000. The slaughter of cows and bulls is also declining. The amount of live cows in the United States has continued to decrease. From 2010 to 2011, the number of live cows decreased by 91 million, a decrease of 2%.
Although consumer confidence has started to improve as consumer incomes have begun to rise, official data for December show that people are more cautious about spending because of lessons learned, and that most of the new income goes to debt service and savings. They are no longer spending as much as they used to. The improvement of consumer confidence certainly does not indicate an increase in the consumption of leather products.
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