Rational Treatment Of Raw Material Prices

After the Spring Festival of 2010, the prices of leather raw materials such as cowhide, sheepskin and pigskin rose rapidly, making leather manufacturers a headache.

Since the beginning of spring this year, tanning enterprises have basically continued the momentum of last year. Business is not booming. Many manufacturers have received orders from Europe and the United States, but they dare not make the list easily. The reason is that the RMB exchange rate is on the high side, and the price of raw materials is soaring.

Industry experts analyzed that the price of raw materials was soaring because of the purchase of raw leather by leather manufacturers themselves.

After the Spring Festival, every tanning enterprise hopes to have a good start in 2010. In order to start production as soon as possible, eager to buy raw leather for production samples, however, due to the tightening of export trade last year, the market demand for leather products is only symbolically restored, not a rapid recovery.

After a period of time, the raw material will return to the normal price. At present, the market turmoil and the high price caused by the long consumption are not caused by the increase in market demand. Therefore, the high price of raw leather is not a rational response to the raw material market. It reminds the enterprises to think rationally and wait and see.