European Suppliers Benefit From USD Appreciation And Tannery Cost Increase

This week, the price of the raw leather market in the United States is stable and the sales volume exceeds the slaughtering volume except the price of the calf skin and buttocks.

The average weight is 64/68 pounds, the price of Dezhou castrated cowhide is 99 US dollars, the export price is 105 to 107 US dollars (cost plus freight), the same heavyweight buttocks leather price rises 2 US dollars.

The supply is limited, and the selling price is flat with last week.

Next week, the US raw leather market is expected to run smoothly.

Benefit from US dollar persistence

European raw leather exporters won a lot of money from the raw skins of the countries whose exports were denominated in US dollars. However, European tanning manufacturers are unable to accept Euro based quotations. For example, the price of 36 kilograms of Irish leather exported to China is 97-100 US dollars (CIF), and the price quoted for sale to Italy is 1.75 euros (delivered in northern Italy tannery area); similarly, France, which weighs 28 kilograms.

The price of this week's sale to China is $90-91 (cost plus freight), and the price to Italy is 2.4 euros.

According to the forecast of the people concerned, next week, the price of the European raw leather market, which is short of Chinese buyers, may be higher than the price increase.

Related links:

A company in Guangdong exported a number of shoes to Egypt and contacted the manager of Xin Weiyuan inspection and Testing Co., Ltd., Shenzhen, before making product testing.

After communication with the company, the company persisted in the ILAC test report, only requiring the 5 (Cotecna Turner, Applus, BV, ITS, SGS) testing, not the related inspection.

2, before the inspection unit issues the COC/COI inspection clearance certificate, it needs to be tested according to the Egyptian standard.

A company in Guangdong exported a number of shoes to Egypt and contacted the manager of Xin Weiyuan inspection and Testing Co., Ltd., Shenzhen, before making product testing.

After the exchange, the company insisted on making ILAC testing only, instead of making the COC/COI method strongly recommended by the manager. The reason is that according to the request of its Egyptian customers, it is thought that as long as there is a test report issued by ILAC qualification, in fact, the formal inspection is "inspection + inspection", and a report will be issued by five institutions such as Cotecna, Applus, BV, ITS and SGS5.

As a result, at the port of destination, the company could not clear the customs because there was no COC/COI related certificate, causing the cargo to stay in port and incur the cost.

After repeated communication with its company, the company still insists on doing ILAC test report, but only requires the inspection of 5 Cotecna (Applus, BV, ITS, SGS), and does not do related inspection.

In fact, the COC/COI certification proposed by the manager to the company is based on the resolutions 626/2011 and 660/2011 issued by the Egyptian import and export control bureau, which stipulates that textiles and leather products need to be tested before each shipment and obtain the certificate of conformity before entering the Egyptian market.

The resolution was announced in 2011, but has not been enforced or implemented strictly.

According to introducing, this resolution has experienced several more and more rigorous execution stages, mainly in November 2011, February 2012, June 15, 2012 and September 15, 2012.

Since September 15, 2012, it has been regarded as a mandatory period. At present, most enterprises in China, including the local importers in Egypt, still have a lot of misconceptions about COC/COI.