The Week at a Glance
- Brazilian raw material inches lower
- Argentine prices unchanged
- China suspends beef exports from 4 Brazilian plants
- Abicalçados prepares record participation for Italy’s Expo Riva Schuh
- Chile: April footwear sales soar by 641%
- Mexico: Padilla Villalpando renews commitment to CICEG
- Paraguay’s 2022 meat exports up in value, down in volume
- Uruguay: BPU to process 15,000 “carbon neutral” cattle by mid-2023
Click here to read the report in Spanish
Raw/Fresh Skins
This week in Brazil, the real closed the week at R$4.8230 against the US dollar compared to R$4.9192 in the previous period. The raw average price of fresh hides dropped 3 cents to sell for R$2.67.
After dropping over the past couple of weeks, the price of Zebu hides was unchanged at R$2.65 to $2.70/kg (with hump). Gaucho hides, however, dropped 20 cents this week, selling at R$2.60 to $2.70/kg (without hump).
In the cattle and raw material markets, the meatpacking industries continue to control the rhythm of their purchases of fat cattle. In most cases, they were absent from operations this week because they have comfortable slaughter schedules. Despite the end buyer testing prices below the current maximums, the volumes of fat cattle traded involve lots with a smaller number of animals. With the end of the harvest approaching, the greater supply of cattle, accelerated by the cold wave of the previous week, puts pressure on prices in the live cattle and replacement market. On the meat demand side, despite the good performance of exports, domestic consumption is moving slowly. However, the lack of business continues to push fresh hide prices lower.
Sources in Argentina say that prices remain the same. So far, tanners have not been able to reduce raw hide prices. However, over the next 2 or 3 weeks, it will be important to see if salted hides start to accumulate and if we see some reductions.
From Uruguay, INAC reports that slaughter for the week ending May 21st was down by 5.7 percent compared to the previous week. For the month of May, the total is still over last year by 14.5 percent. For the year to date, slaughter has increased by 13.5 percent.
May will be the 13th consecutive month exceeding 200,000 cattle slaughtered, expected to close with nearly 230,000. For the 12-month period, it will be a new record of more than 2.75 million head slaughtered. For the first time in at least 10 years, 30,000 steers or more were slaughtered in two consecutive weeks.
The week’s decrease in slaughter was anticipated, mainly due to the availability of well-finished free-range cattle.
Steers slaughtered in May exceeded 30,000 weekly (91,822 from May 1 to 21), 19.3% more than in 2021 and almost 60% more than in 2020: in May they hit 52% of the participation by categories, compared to 49% of the annual total.
Wet Blue & Crust
Brazil’s domestic market was a little calmer in terms of sales this week, however, the scenario is positive with regard to the demand for leather for footwear exports.
Otherwise, the overall market is quiet and bids were still low. Inventories remain high, which means that global customers are more likely to reach their target prices. Actually, prices may go a few cents lower in an attempt to draw the market’s attention and the possibility of new contracts for the coming weeks. The new appreciation of the Real still held prices firm this week, but we have heard about a few contracts being negotiated under strong pressure with prices.
For now, TR1 remains at US$0.90 per square foot and extra heavy at $0.95.
The leather sector is currently in its least active period in the northern hemisphere, with lower sales. The situation is accentuated by the war in Ukraine and measures to combat COVID in China. It highlights that the costs of inputs and logistics remain high, creating difficulties that will only be attenuated by the reduction in the price of raw materials.
PRICES IN BRAZIL
WEEKLY PRICES PER US$/CFR (except raw material)
FRESH HIDES US$/Kg | This Week | Last Week |
US$0.55 | US$0.55 |
WET BLUE WHOLE HIDES FULL SUBSTANCE | This Week | Last Week |
Grade TR1 23Kgs+ | 0.90 | 0.90 |
Grade TR2 22Kgs+ | 0.80 | 0.80 |
Grade TR3 21Kgs+ | 0.70 | 0.70 |
Grade TR4 19Kgs+ | 0.60 | 0.60 |
WET BLUE WHOLE HIDES 20 mm+ | ||
Grade TR1 47/52ft | 0.80 | 0.80 |
Grade TR2 47/52ft | 0.70 | 0.70 |
Grade TR3 45/50ft | 0.60 | 0.60 |
Grade TR4 45/50ft | 0.50 | 0.50 |
WET BLUE SIDES 24mm+ | ||
Grade AB 22/26ft | 0.80 | 0.80 |
Grade C 22/26ft | 0.70 | 0.70 |
Grade D 22/26ft | 0.60 | 0.60 |
Grade E 20/26ft | 0.50 | 0.50 |
Grade F 20/26ft | – | – |
WET BLUE SPLITS* | ||
6/9 Kgs (Glove standard) | 0.70 | 0.70 |
7/10Kgs | 0.90 | 0.90 |
10/12Kgs | 0.95 | 0.95 |
14 kg+ | 1.00 | 1.00 |
CRUST ( UPHOLSTERY ) 9/11 mm Stucco & Buffed | ||
TR 01 | 1.08 | 1.03 |
TR 02 | 0.98 | o.93 |
TR 03 | 0.88 | 0.83 |
CRUST ( AUTOMOTIVE O&M ) 11/13 mm | ||
TR 01 | 1.40 | 1.40 |
TR 02 | 1.30 | 1.30 |
TR 03 | 1.20 | 1.20 |
CRUST ( AUTOMOTIVE O&M ) 11/13 mm | ||
TR 01 Vacuum Dry | 1.53 | 1.53 |
TR 02 Vacuum Dry | 1.46 | 1.46 |
TR 03 Vacuum Dry | 1.39 | 1.39 |
CRUST SIDES FOR SHOE UPPER BLACK DYED THRU | ||
ABC 12/14 mm 14/16 mm | 1.00 | 1.00 |
D 12/14 mm 14/16 mm | 0.98 | 0.98 |
PRICES IN ARGENTINA
Buenos Aires
Steers | $0.85 |
Cows | $0.51 |
Heifers | $0.85 |
ARGENTINA | This Week | Last Week | |
Raw hides (W/S) | |||
Steers | $0.85 | $0.85 | |
Cows | $0.51 | $0.51 | |
Heifers | $0.85 | $0.85 | |
Crust for shoe upper, 1.2/1.4 mm, black dyed thru* | ABC | 1.91-2.06 | 1.91-2.06 |
CDE | 1.51-1.61 | 1.51-1.61 | |
Crust whole hides for upholstery 0.9/1.1 mm** | Auto | 1.41-1.56 | 1.41-1.56 |
Furniture | |||
Wet blue drop splits, average 9/11 kg, selection TR*** | Auto | 1.20-1.35 | 1.20-1.35 |
**Usually for full grain selections.
*The selection composition determines the price.
Uruguayan market firm
There were no changes in the market because demand was unchanged.
SALTED | US$29.00 per hide/28 kg FOB |
WET BLUE 14/16 AB | US$ 1.30 |
WET BLUE 14/16 TR01 | US$ 1.10 |
WETBLUE 14/16 TR02 | US$ 1.00 |
WETBLUE 14/16 TR | US$ 1.15 (AB/TR1/TR2 = 30/40/30) |
CRUST 10/12 TR01 | US$ 1.35 |
CRUST 10/12 AUTO | US$ 1.70 |
CRUST 10/12 AUTO | US$ 1.80 (Vacuum Dry) |
We remind readers that all price tables are intended as a basis to illustrate trends. Our prices quoted do not reflect quality changes present between one and the other source. Hidenet.com recognizes that there is a variety of factors able to determine different prices for similar materials.
Colombian market unchanged
Colombia’s market remains quiet.
Salted | 26/28 kg | US$0.60/kg |
Salted | 30/32 kg | US$0.70/kg |
WB | TR1/TR2 20/22mm+ | US$ 0.64 per sq ft |
WB | TR3 | US$ 0.54 per sq ft |
We remind readers that all price tables are intended as a basis to illustrate trends. Our prices quoted do not reflect quality changes present between one and the other source. Hidenet.com recognizes that there is a variety of factors able to determine different prices for similar materials.
Chile stable
The market was unchanged again this week.
TR1 | USD 1.07 (full substance | USD 0.95 16mm+ |
TR2 | USD 0.97 (full substance) | USD 0.85 16mm+ |
TR3 | USD 0.87 (full substance) | USD 0.75 16mm+ |
We remind readers that all price tables are intended as a basis to illustrate trends. Our prices quoted do not reflect quality changes present between one and the other source. Hidenet.com recognizes that there is a variety of factors able to determine different prices for similar materials.
INDUSTRY NEWS
ARGENTINA
Shopping centers sales up 96.8% led by clothing and leather goods
Total sales of Argentine shopping centers in March grew by 96.8% year-on-year, totaling 40,970.2 million pesos (about $344 million).
Data from the National Institute of Statistics and Censuses (INDEC) show that once again, the Clothing, footwear and leather goods sector was the best-selling sector, accounting for 41.9% of total sales. The sector totaled sales of 17,181 million pesos (approximately $142 million) in March, showing a general growth of 115.1% year-on-year.
BRAZIL
China suspends beef exports from 4 Brazilian plants
Reuters reports that China has temporarily suspended beef imports from four Brazilian slaughterhouses, two operated by JBS SA and two by Marfrig. China’s government provided no reasons for the suspension.
Brazil’s Ministry of Agriculture, Livestock and Supply confirmed that it received the notification from Chinese authorities. (May 25th)
The news service cites anonymous sources that one of the affected plants is Promissao, Sao Paulo and cannot export to China for four weeks. Marfrig’s Varzea Grande plant in Mato Grosso is suspended for a week. Reportedly, JBS plants in Senador Canedo, Goias state, and another in Lins, Sao Paulo state, are suspended for a week.
Abicalçados prepares record participation for Italy’s Expo Riva Schuh
In order to further increase footwear exports, Brazilian Footwear is preparing for 46 brands to participate in Italy’s Expo Riva Schuh. This is the largest Brazilian contingent to ever participate. The fair takes place June 11 to 14 in Riva del Garda.
“We are experiencing a unique moment for Brazilian footwear exports and the Italian fair presents itself as another relevant opportunity to be on the international circuit and in front of some of the main players in the world, especially in Europe,” says Aline Maldaner, Abicalçados’ relationship analyst.
Between January and April, Brazilian footwear exports totaled 53.72 million pairs, valued at US$434.65 million, superior results both in volume (+32.6%) and in revenue (+68.2%) compared to same period last year. In terms of European countries, exports in the period totaled 13.54 million pairs, which generated US$85 million, an increase of 36.8% and 48.2%, respectively, compared to the same period in 2021.
Presenting at Expo Riva Schuh, with the support of Brazilian Footwear, are: ADG Export, Awana, GVD International, Usaflex, Carrano, Stéphanie Classic, Andacco, Beira Rio, Vizzano, Moleca, Modare Ultraconforto, Molekinha, Molekinho, Actvitta, BR Sport, Madeira Brasil, Verofatto, Werner, Pegada, Capelli Rossi, Jorge Bischoff, Loucos & Santos, Democrata, Piccadilly, Anatomic Shoes, Sapatoterapia, Cartago, Grendha, Copacabana, Azaleia, Grendene Kids, Kidy, Suzana Santos, Renata Mello, Azillê, Pampili, Ramarim, Comfortflex, Levecomfort, Leveterapia, Cristofoli, Adrun, Cecconello, Alex Senne, CCR Shoes, Boaonda, Bibi, Ortopé, Dok, Dijean, Vectron, All’us Footwear and Alliance Shoes.
SICC surprises with excellent results
Fashion Network
The three days of SICC – Salão Internacional do Couro e do Calçado showed that national retail buyers want to put the hard period of the coronavirus pandemic behind them. It was much the same for importers, who came from four continents to see what the Brazilian industry has prepared for spring and summer 2022/2023.
Sales were above average considering the editions of the past decade. Results were positive at, in some cases, 30% above the last in-person edition in 2019, says Maribel Christine da Silva, commercial and marketing director of Grupo Beira Rio.
Frederico Pletsch, director of Merkator Feiras e Eventos, says that they are already working on the 30th edition to be held in 2023. The fair’s calendar is already defined for the next three years: from May 22 to 24 in 2023; from 20th to 22nd of May in 2024 and from 19th to 21st of May in 2025.
CHILE
April footwear sales soar by 641%
The In-person retail sales in the Metropolitan Region (RM) increased by 65.7% in April, accumulating so far in 2022 a rise of 16.8%, according to the National Chamber of Commerce, Services and Tourism of Chile.
The footwear division ended April with a notable increase of 641.7% in retail sales done in-person, closing the first four months of the year with an accumulated acceleration of 80% compared to the same period in 2021.
“The strong annual increases in face-to-face sales in April respond to the fact that we are comparing ourselves with last year, where in the same month non-essential face-to-face commerce could not open its doors. We will experience the same scenario in May and June, since in May the last year the RM went into transition, opening only from Monday to Friday and then in June it fell into total quarantine again,” explains Bernardita Silva, manager of studies at the CNC.
COLOMBIA
Vélez opens new store at Cali airport
Cueros Vélez is banking on a growing travel market by opening a store at the Alfonso Bonilla Aragón airport in Cali.
The store offers the brand’s full line of leather goods and accessories, including wallets, purses, backpacks and small leather pieces.
Colombia’s Cueros Vélez is committed to sustainability with a reduction of at least 40% in the use of non-renewable natural resources. It also uses 100% of leftover leather by-products in the creation of its articles.
MEXICO
Padilla Villalpando renews commitment to CICEG
El Sol de Leòn
The 2022 Board of Directors of the Chamber of the Footwear Industry of the State of Guanajuato (CICEG) was sworn in and Alfredo Padilla Villalpando will preside for the third year.
Padilla Villalpando stressed that the footwear sector should be a priority on the state’s economic agenda because it is the second-largest generator of jobs in the region.
“There is no doubt that the positive part that the pandemic left us was forcing us to evolve as entrepreneurs. It is a reality that approximately 20% of the companies closed and the remaining 80%, we are attending to the demand of the clients.”
He added that companies must seek their development and growth with customers and suppliers who understand the vision of innovating and evolving, since suppliers also require a commitment from manufacturers to continue supplying and manufacturers seek committed customers, to continue growing and producing.
He noted that the CICEG is working with the authorities to promote legality and formality with companies in the sector. The sector continues to suffer from the increasing volume of low-priced imports.
During the meeting, the CICEG presented some awards as well:
- Alberto Pérez López received the “Silver Tray 2022”. He is president of Grasas el Oso, with more than 100 years in the market;
- Francisco and Héctor Cuadra Muñoz received the San Crispín de Oro for their quality and originality in shoes, belts and handbags.
PARAGUAY
Paraguay’s 2022 meat exports up in value, down in volume
In the first four months of 2022, Paraguay’s beef exports brought in 2.8 percent more than the same period last year. The total of $509.4 million is 2.8% above the same period last year.
In volume, sales abroad were 14.1% below same period of 2021 with 95,738 tons. However, it is the second year of highest exports, falling behind 2021, which was historic in terms of slaughter, exports and billing.
The average price per exported ton was US$5,320, 19.5% more than the US$4,450 earned in 2021.
Cattle processing in the exporting refrigerators in the first four months of the year totaled 658,520 head, down by 13.1% compared to the same period last year. Overall, 133,649 steers, 242,342 bulls, 159,373 cows and 123,156 heifers entered the plants.
Paraguay’s footwear exports to Brazil soar by more than 200%
According to the latest report from the Brazilian Association of Footwear Industries (Abicalçados), Paraguay is still the main Latin American supplier to Brazil thanks to a triple-digit increase.
Data show that between January and April 2022, sent 382,818 pairs to Brail, an increase of 255.1% over the same period of 2021, which totaled 107,809 pairs of Paraguayan origin.
On the other hand, the value of the exports was lower. The total for the four months of 2022 was $377,266, which is 12.8% less than the same period of 2021 when footwear exports to Brazil totaled $432,884.
URUGUAY
BPU to process 15,000 “carbon neutral” cattle by mid-2023
Uruguayan slaughterhouse BPU Meat, owned by Japan’s NH Foods Ltd., is seeking to certify up to a fifth of the cattle it processes as carbon neutral by 2025.
BPU Meat’s carbon-neutral beef hit supermarkets in Japan and Uruguay, as well as Germany’s Block House restaurant chain, in March.
The company expects to process 15,000 certified bovines by the second quarter of 2023 and at least 30,000 within three years through an agreement with the Montes del Plata forestry company, Daniel de Mattos, senior advisor to the BPU board, told the Bloomberg agency.
Through an agreement between BPU and Montes del Plata, the SGS certifier validates that the emissions of livestock owned by more than 300 participating ranchers are offset with forest plantations. The program fits with NH Foods’ goal of reducing its carbon footprint by 40% by 2030, De Mattos said.
In Uruguay, cattle company Mosaica pioneered the export of carbon-neutral meat with the first export of LSQA-certified beef to Europe in December, followed by BPU and a unit of Brazil’s Minerva Foods SA this year.