March 10th
Leather and Hide Weekly
The Leather and Hide Council of America (LHCA) is reminding members that China's Ministry of Finance on March 2 began accepting tariff exclusion requests on nearly 700 U.S. product imports, including raw cattle hides that represent the majority of U.S. hides exports to China. We're hearing that many Chinese tanners have applied for, and have received, exemption from the tariffs. Plus, January 2020 export data is now available. Also, LHCA is providing resources to help members navigate concerns regarding coronavirus (Covid-19). More on these and other topics below.
Weekly Hides and Skins Stats
- Net sales of cured cattle hides reported for the period ending February 27 were 338,500 pieces and of wet blue were 116,800 pieces. Reported shipments of cured hides were 321,400 and of wet blue were 133,400. China was the largest buyer of cured hides and Italy was the largest destination for wet blue. See more.
- U.S. Cattle Slaughter was 647,000 last week, up 3.2 percent from the previous week. Total cattle slaughter in 2020 is 6,039,000, one percent above 2019 levels. See more.
- USDA AMS Major Packer Hide Price Report provided prices for nine types of U.S. hides at 10 price points with a spread of $4.50 for branded southwest cows to $31 for butt branded steers. See more.
- The USDA price report is a snapshot of the market. For real time hide market prices, please consult our friends at Hidenet, The Jacobsen, The Maxfield Report, or The Sauer Report.
Industry Updates
- For those LHCA members who have not yet completed our membership directory survey, please be sure to do so at your earliest convenience. We will soon be publishing the association's updated membership directory on the new LHCA website, and want to ensure we have the most current information for your business. If you have questions about the survey, please contact Michael Schumpp.
- Amid growing concerns about the coronavirus (Covid-19), LHCA is directing members to this resources page for the latest information on the virus, including steps companies could, and in some cases should, take to protect their employees and their operations. The Centers for Disease Control and Prevention and the White House emphasized the importance of companies working closely with state and local health officials to ensure that employers make the best decisions possible for their employees and their operations. Johns Hopkins University has a coronavirus resource center that includes a map with information regarding the outbreak.
- LHCA is in the process of planning its Spring Board of Directors Meeting, which will be held April 23-24, 2020, in Washington, DC. The meeting, however, can also be accessed via teleconference and webinar for those who are unable to attend in person, particularly due to coronavirus travel restrictions. The LHCA Executive Committee, Board of Directors and committees will meet. The agenda will also feature general presentations and LHCA program updates. For those considering attending in person, please contact Stephen Sothmann or Michael Schumpp to receive a list of suggested hotels. Please also contact Steve or Michael if you intend to participate in the meeting via teleconference/webinar. We will continue to provide updates as they become available.
- Many outdoor and athletic brands are seeking suppliers that are Certified Berry Compliant. If your company is Certified Berry Compliant, please contact Hisham Muhareb at American Events, Inc./The Materials Show with your contact information and a short profile of your company, along with a list of your products.
- The Leather Research Lab at the University of Cincinnati announced it will host several educational opportunities in 2020. The Lab will once again host its popular, two-day Leather Orientation Course April 8-9, 2020, that will cover a wide range of leather-related issues, including physical structure, species identification, hide supply, wet-end and finishing operations, regulations, testings and customer acceptance topics. The course costs $985 per person, with a discounted price of $885 for additional participants from the same company. Meanwhile, the Introduction to Leather Testing Workshop will be held August 19-20, 2020, and is designed for individuals that need a comprehensive understanding of both the theory and application of standard test methods used in the leather industry. The cost to participate in the workshop is $1,250 per person. Contact Louisa Passano at 513-242-6300 or passanlb@ucmail.uc.edu for more information and to register for one of these courses. Additional details are available here.
- The APLF-Leather, Materials+ and Fashion Access show, originally scheduled to take place March 31-April 2 in Hong Kong, will be postponed until June 1-3, 2020, due to concerns regarding the novel coronavirus outbreak. More information is available here.
Other Trade News
- As we previously reported, China is currently accepting tariff exemption requests on nearly 700 U.S. imports, including on raw cattle hides larger than 16 kg (HS Code 41015019), which represent the majority of U.S. hides exports to China. Many Chinese tanners already applied for, and have been approved to receive, tariff exemptions. When they apply for tariff exemption, Chinese tanners will receive a code for each shipment that they will then use to ensure the product clears customs with the additional tariff waived. LHCA members are encouraged to work with their Chinese importers and customers to apply for the tariff exclusion. A report detailing the latest tariff exclusion process is available here.
Monthly Data
U.S. hides and skins January 2020 export data is now available. Get a summary of the data here.
- Cured cattle hides exports rose four percent in volume, but declined nine percent in value compared to 2019. Download the data here.
- Wet blue shipments decreased nine percent in volume and 11 percent in value. China/Hong Kong was the largest buyer by value, totaling more than $11 million.
- Pig skin exports increased one percent in volume, but fell 18 percent in value compared to 2019. Download the data here.
Latest Updates from Real Leather. Stay Different.
The Real Leather. Stay Different. global student design competition continues to ramp up in China, Taiwan and the UK. Check out this novel, stylish submission from a young Chinese designer who drew her inspiration from the cowboys of the American "Wild West." Get all your design competition news at chooserealleather.com. Plus, check out our video here showcasing the first round of competition in China.
Leather News
Each week, we will share relevant leather news below. Some of the articles may cover our products, and the industry, unfavorably, but we still believe it is important to share the different ways in which leather is presented in the media. If you find articles that you would like to see included, please send them to mschumpp@meatinstitute.org.