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The Original Leather Market Analysis

62-70 pounds as the global benchmark market bull market, the United States Texas castrated leather, nearly a year to achieve three fluctuations in the rise, up to now, the price increase of 12.5 US dollars; July price weakness, the root causes of the United States from the end of April the average weekly Slaughtering amounted to 584,500, compared with last year, an average increase of 6.80%.

Since 2016, the US dollar continued to weaken, changes in supply and demand structure, financial investment and other factors to promote, commodity prices after a brief hit bottom, the emergence of a strong rebound, a larger rate of increase. Such as PVC synthetic leather, coal, oil, rubber, steel, iron ore, nonferrous metals and other commodity prices generally rose.

As a benchmark for commodities, NYMEX crude oil from the beginning of 2016 the lowest point of 27.3 gradually increased to early October 50 (USD / barrel). As a by-product of crude oil, PVC is also an important raw material of artificial leather, and from February 2016 since the PVC futures closing price has risen from 4345 yuan per ton in September 2016 to 6200 yuan / ton, the price increase of 21.48% Generally expected in the next few months to break 7,000 yuan mark.

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Recently domestic freight up! Base cloth up! Resin rose! DOP up! Synthetic leather SWS index at the end of 1 5463.56 stabilized, then rose, an increase of 44.57%. As the original skin competitive products synthetic leather raw material prices, will play a positive role in the international skin.

Affected by rising prices of artificial leather materials, 9-10 months, the market price of gray two-skin suede up a significant upward correction.

Natural rubber is also an important factor affecting the price of synthetic leather.Natural rubber trees are mainly concentrated in the Southeast Asian region, Thailand, Indonesia and Malaysia as the main producer. The automotive industry as the largest consumer of natural rubber industry, its development led to the move of the rubber Quotes. In addition, affected by abnormal weather, Southeast Asia and China-made rubber are cut. 2016 there is a need for good and tight supply situation. Rubber is expected to remain strong in the second half.

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Other major domestic industrial raw materials, the recent trend of the impact of the original leather prices

With the recent heavy domestic production of raw materials needed to go to the production capacity of the demand for inventory to pick up, black goods, the recent recovery of power, chemical raw materials and nonferrous metals iron ore also took the occasion to rise. Although the current low end consumer prices, but with the general rise in commodity prices of raw materials prices, end consumer prices will inevitably rise.

To sum up: for the leather industry, the current global commodity prices of raw materials generally rose, especially oil prices rise, the original leather with leather instead of leather design and parts manufacturers will consider the use of more leather material to enhance Product added value.In addition, China's domestic industrial raw materials luxury pick up, will be on the domestic PPI index play a supporting role, while the downstream industrial products business will certainly seek to enhance the price of end products to offset the impact of rising raw materials.Finally, In terms of foreign demand, India and other countries, the recent economic indicators dazzling, India's domestic market demand for water buffalo growing, will contribute to the international price of raw skin positive factors, while Mexico due to a variety of trade agreements, car upholstery exports, Coupled with the recent world on the more high-quality specifications of the United States has increased the demand for the original skin, as well as traditional Chinese footwear luggage export season and the arrival of the domestic furniture market season is expected for some time the US price of the original skin will be good support.