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    Tannery Closures Due To Falling Prices In Latin America

    2011/8/19 16:54:00 76

    Latin American Raw Leather Market Price Closures

    In Latin America, the price of raw leather market has dropped. Trend strengthening It is difficult for tanneries to gain profits at the price they are willing to pay for wet blue, so they reduce production and influence market transactions. This has led to a reduction in the soaking of raw skins, especially in Brazil, and in Argentina and elsewhere in Latin America.


    There are difficulties in negotiating prices every day, and some buyers want market prices to fall, which of course will not happen.


    For all kinds of Brazil Manufacturing and production The exporters of their products failed to avoid the adverse effects of the US dollar on the fall of rial exchange rate. Last week, due to the US economic problems, the US dollar rebounded slightly, but on the last day, the interest rate paid by the Brazil market was very high, and the funds poured into the area. However, the amount of money was too large and unpractical, because there was no real investment, and only speculation, which made the exchange rate far lower than its reasonable level.


    Now, many buyers will say that they will succeed in obtaining low prices, and many sellers will say that they will succeed in obtaining their asking price or very close price. Both are trying to promote the development of this trend, but neither of them is true. The typical quotation of TR 1 total wet blue leather is US $1.65 (cost plus freight). For high quality products, the bid of $1.55 is usually rejected. The follow-up message for Brazil last week is as follows:


    According to a report by EPTV, a local television station in Brazil, JBS SA has already closed one of its offices. St Paul Prefecture A 70 year old tannery in Aguai city has caused about 400 people to lose their jobs. This is to transfer resources from Aguai to Cear, a state in northern Brazil.


    The company bought the tannery a year and a half ago. According to the news channel, employees were informed that the plant would be closed three weeks ahead of schedule.


    In May, JBS SA announced that it would add 1000 new jobs to one of its leather tanneries, located in the city of caspaar, which is located in 56km, the capital of the state of the state of Sarah. JBS leather is expanding and promoting leather production in shoe industry. The company will close small tanneries in some parts of the country so as to reconcentrate resources in the northeast.


    The JBS drying plant in Cear has employed 1500 workers to deal with leather mainly for the automotive furniture market.


     

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