Significant correction in hide market

There has been a significant correction in the hide market over the past weeks, due to a drop in the global market. 

The United States’ hide market has dropped over the past weeks. Essentially South Africa has moved from a base level of $95.5 in Week 12 to $61.5 in Week 30; a drop in excess of 35%. The fixed rate over this period has remained almost level; 12.45 in Week 12 compared to 12.65 now (only a 1.5% differential).

Due to this significant correction the local hide market is still looking for a level at which markets will absorb the South African hide volumes. Unfortunately we are not there yet; but hopefully fast approaching a stable level.

Based on current buyer feedback and market indications, it is expected that prices will continue to fall until such time as buyers come back into the market.