March 17th

Leather and Hide Weekly

As a result of growing concerns regarding the COVID-19 pandemic, Leather and Hide Council of America (LHCA) staff will be working remotely until further notice. We are committed to working on your behalf during this time and encourage you to reach out if you have any questions or concerns. Please stay safe and take necessary precautions to protect your health and the health of those around you.

In light of the rapidly evolving COVID-19 situation, LHCA has decided to hold its April Board of Directors meeting via teleconference/webinar only. Also, LHCA is providing resources to help members navigate this public health emergency. More on these and other topics below.

 

cows

 

Weekly Hides and Skins Stats 

  • Net sales of cured cattle hides reported for the period ending March 5 were 356,000 pieces and of wet blue were 100,000 pieces. Reported shipments of cured hides were 373,700 and of wet blue were 129,600. China was the largest buyer of cured hides and Vietnam was the largest destination for wet blue. See more. 
  • U.S. Cattle Slaughter was 630,000 last week, down 2.6 percent from the previous week. Total cattle slaughter in 2020 is 6,670,000, 1.8 percent above 2019 levels. See more.
  • USDA AMS Major Packer Hide Price Report provided prices for six types of U.S. hides at seven price points with a spread of $3 for branded cows to $34 for heavy native steers.  See more.

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 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 has decided to hold its Spring Board of Directors Meeting via teleconference/webinar only. The meeting, which was scheduled to take place April 23-24, 2020, in Washington, DC, will no longer be held in-person. LHCA encourages those members who made travel arrangements to attend the in-person meeting to cancel those plans as early as possible to recoup any expenses incurred. LHCA will follow up in the coming weeks with a new schedule of events, including teleconference/webinar details for the Executive Committee, Board of Directors and committee meetings. Most of the meetings will still be held on April 23 and 24, but some committees may convene earlier that week. In the meantime, please contact Stephen Sothmann or Michael Schumpp with any questions about the meeting.  
  • 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 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.  

 

cows

 

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 have already applied for, and have been approved to receive, tariff exemptions. When they apply for tariff exemption, which must be done monthly, Chinese tanners receive a code for each shipment that they can then use to ensure the product clears customs with the additional tariff waived. Only Chinese importers may apply to receive tariff exemption using a product's eight-digit HS code. LHCA members are encouraged to work with their Chinese importers and customers to apply for the tariff exclusion. According to individuals familiar with the exclusion process, China is reportedly granting tariff exemptions for products that were and were not included in the country's initial tariff exclusion announcement. A report detailing the latest tariff exclusion process is available here.
  • Separately, LHCA joined 161 other associations and companies in urging the House Ways and Means Committee to request that the Trump Administration remove Section 301 tariffs levied on Chinese imports, and to instead pursue more strategic means to hold China accountable. The organizations, in the letter, also detailed the negative economic impact of the tariffs on the U.S. economy to demonstrate their ineffectiveness as a tool to pressure China into making more sweeping structural reforms. More here.  
  • The Canadian Parliament last week approved the U.S.-Mexico-Canada agreement (USMCA), becoming the last of the three signatories to ratify the deal. Canadian approval of the agreement initiates a three-month period during which the U.S., Mexico and Canada must meet all obligations outlined in the deal prior to the agreement entering into force. More here.   

Monthly Drought Monitor - February 2020

 

U.S. drought Map

A low pressure system propagated eastward across much of the southern tier states in the period March 4-6 and merged with a short-wave trough dropping southeastward from the Midwest before moving off the mid-Atlantic coast on March 7. The system dropped more than two inches of rainfall over large areas from extreme southeastern New Mexico eastward to South Carolina. Some areas of Alabama and Georgia saw more than five inches of rainfall, which fell over saturated soil. However, much of the heavier rainfall remained north of the I-10 corridor from southern Texas to northern Florida, while areas south of the I-10 received only modest amounts, which were not nearly enough to reduce deficits. The Pacific Northwest and California also saw some precipitation over the past week, but amounts were not enough to reduce any deficits. Some recent dryness over southern Iowa and northern Missouri was mitigated a bit with near- to above-normal precipitation falling last week as well. Deficits increased in the mid-Atlantic and New England over the past 30 days, but were kept at bay, as these areas saw 0.1 to 1 inch and 0.1 to 0.5 inches of rainfall, respectively. The active storm track continued last week for Alaska, with the southeastern Panhandle receiving 2 to 6 inches of precipitation over many areas. This precipitation, along with near- to below-normal temperatures, has finally produced above-normal snowpack in the Alaska Panhandle for the first time in 7 to 8 years, warranting DO removal. Hawaii remained dry on the leeward slopes last week due to persistent trade winds, leading to some DO expansion and development on the Big Island and Oahu, respectively. Puerto Rico saw DO removal, as northern portions of the island saw above-normal precipitation, eliminating short-term deficits.

Latest Updates from Real Leather. Stay Different.

london fashion week

 

What were some of the most trendy, stylish leather looks at this year's London Fashion Week? Check out our top five picks here. Also, the Real Leather. Stay Different. global student design competition continues to ramp up in China, Taiwan and the UK. 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.