Tanneries denounce a strong concern over the increase in prices suffered by raw materials in a phase of poor market stability caused by the pandemic. As concerns raw hides, price lists have entered a pressure stage. Average increases are around 13% but in certain types like bullcalf leather they reach + 35%. According to the association of tanners, these price increases are unjustified.
“Prices have risen in an almost irrational way in the face of tanneries with blocked work and customers who have substantially decreased demand”, says UNIC, the association that brings together Italian tanneries. The cost pressure also affects suppliers of chemical products, as already announced by UNPAC, the National Union of Italian Auxiliary Producers. Several suppliers of chemical-tanning products have announced an increase on all types of products from 1 April 2021, with increases between 5 and 40% and average peaks of 15%. The phenomenon derives from the growing cost of raw materials also in the chemical sector, as well as from shipping costs due to the limited availability of containers. Also the recent seven-day traffic stop in the Suez Canal, a key trade route for global business weighed on the difficulties of the sector.
Asking suppliers to share a necessary supply chain responsibility, UNIC also warned that further price increases could generate "a tension that risks turning out to be a boomerang for the entire supply chain".