Analysis of the status quo of leather and artificial leather industry

China International Leather Exhibition covers the entire supply chain of the leather industry, including the latest technological developments and products, and continues to play a role in opening the door to the Chinese leather industry, allowing the industry to access the latest technology and more effectively produce leather in a sustainable manner. The exhibition attracted 20 national pavilions, 23,000 buyers, more than 1,000 international and local exhibitors, and will showcase a wide range of leather, specialty materials, accessories, machinery and services, including the leather industry. And the entire supply chain of the footwear industry.

Since the end of the Asia Pacific Leather Fair at the end of March last year, the problem of oversupply of raw hides has put pressure on the market, and the prices of leather and raw materials have fallen further. More cattle were slaughtered and the supply of hides became abundant, making the current price of hides and wet blues the lowest since the 2008/09 financial crisis. The Texas Bulls sold for $80 in the same period last year and are now down to about $55, a drop of 32%.

At the end of February this year, a total of 3.8 million pieces of sold hides were stored in warehouses in the United States, and they were still not delivered to their destinations. The number of farmed cattle also increased by 8%, indicating that there will be no shortage of hides in the United States this year, which will hinder the relevant prices. rise. But for the leather goods manufacturing industry, this is not bad news. Manufacturers will realize that lowering the price of leather will actually increase profit margins, especially when crude oil prices continue to rise this year, and crude oil is the raw material for artificial leather.

Nowadays, designers and stylists are missing. They insist on using artificial leather to make shoes. Because of the popular street style and sports leisure style, sports shoes and casual shoes continue to dominate the sales of shoes. However, footwear leather suppliers should not forget that China produced about 4.5 billion pairs of leather shoes in 2017, so the market still needs a lot of footwear leather. The leather industry needs to absorb more demand from footwear to reduce the current and future supply, while maintaining the stable and continuous growth of furniture and seat fabrics in order to allow the tannery to have enough work. Continuous production of leather. A survey conducted by the magazine "Today's Furniture" showed that 29% of home seat fabrics use leather, and the global sales of the automotive industry reached a new high in 2017, with a total of 90 million cars sold, of which 28.8 million were sold in China. Automobiles and commercial vehicles are expected to continue to be at a high level in China and the United States, and the sales of automobiles are so good. The demand for automotive leather in 2018 should be sufficient.

The environmental governance policy implemented by the Chinese government three years ago has been almost completed. The environmental quality of residents living and working near industrial areas should be improved, and manufacturers will produce more environmentally friendly leather in a sustainable way. It will also be more popular than ever before and is particularly beneficial to exporters. The main competitor of China's footwear industry is Vietnam, a neighboring Southeast Asian country. Seventy-five percent of the local leather is imported to make shoes. This year, the China Leather Association continues to promote China International Leather Exhibition, which is not only limited to Chinese tanneries and manufacturers, but also hopes to attract more footwear and leather goods manufacturers from Southeast Asian countries, because wages in these countries are relatively high. Low, and now China’s major reform phase advocates not export-oriented, and transformation is dominated by consumption. Mr. Chen will mention this in a later report.

The only thing that the overall economy is now worried about is the possible collapse of trade policy. The policy is fundamentally to protect local production by imposing tariffs on raw materials and manufactured goods that are imported into the United States. On the day of writing this, the BBC reported that European countries also have to pay the same taxes. Such a policy would affect global trade and slow down the trading of goods and services, hindering the functioning of the global economy.