Barring unforeseen circumstances, genuine and artificial leather processors and finished goods manufacturers have no plans, prices in the coming months to increase.
After climbing 10 percent in October 2010, leather costs in China stabilized March 2011. The increase in contributions last year with increases in other production inputs, leading manufacturers of leather such as shoes, clothes, handbags, accessories and furniture, export prices increase 10-20 percent in the second half of 2010.
But the dates are expected at the same level for the rest of the year; mainly due to an excess supply of products processed remain.
Finished goods suppliers have no intention of export prices to increase this year. But watch out for sudden changes that can affect production costs, many now prefer to take orders for short-term price adjustments faster and easier.
The cost of synthetic and genuine leather, for example, could rise again if the turbulent situation in the Middle East intensified and raise oil prices.
Leather current prices are higher by 5 percent in Q4 2010th Grade A cowhide now costs $ 4 per square foot, while grade B-cost version $ 0.23 to 0.30 dollars cheaper. Class A and B pigskin is $ 3 and $ 2.90 per square foot respectively.
PU leather base fabric with a thickness of 0.7 mm and a width of 1.45 m was set at $ 1.27 to $ 1.46 per meter in October 2010. Prices rose to $ 1.55 to the end of meters before falling to $ 1.39 per meter of March. These prices include VAT at 17 percent, of which 13 percent is refunded to those responsible.
PU leather is usually more expensive than a 100 percent PVC versions. But there are some kinds of PU, the higher costs of up to 300 times can, including those that require special coatings and treatments.
Cost factors
About 80 percent of domestic production is low-end leather. Leather Mid-range and high-end, mostly in Italy, Australia, India and Brazil imported.
One of the reasons for the slight increase in the prices of leather higher raw material costs. T / C fabric was often used as a basis for artificial leather above 5-8 percent in Q4 2010th The cost is stable since.
Note ecological requirements are the second factor. Since 2010, thousands of genuine leather factories in Hebei, Guangdong, Zhejiang and Fujian closed or invest in improvements to wastewater process to meet local standards. China Leather Industry Association Secretary Chao Ying your estimates of 1,000 factories with annual production capacity topping 30,000 units have been affected.