For the Quarter Ending September 2024
North America
In the U.S. market, the price trend for leatherette is currently challenging in Q3, influenced by various factors impacting both supply and demand. Reports indicate moderate sales in the automotive sector during Q3, which have led to subdued demand for leatherette products.
This trend aligns with the overall moderate economic performance, which has also affected consumer spending and business investments. Furthermore, the recent impact of Hurricane Milton has disrupted supply chains, hindering manufacturing and trading activities in the region. In response, suppliers are adjusting their production schedules and managing inventory levels to navigate the fluctuations in demand and ongoing supply chain issues.
These supplier actions are crucial for maintaining availability and mitigating the adverse effects of the hurricane on logistics. Consequently, leatherette prices are facing upward pressure as suppliers strive to balance production with the existing demand constraints. This scenario highlights the necessity for suppliers to implement strategic adjustments to navigate a challenging market environment while optimizing pricing strategies effectively.
APAC
Throughout Q3 2024, the Leatherette market in the APAC region experienced stability in prices, with no significant fluctuations observed. Various factors contributed to this stable pricing environment. One key factor was the balanced supply chain, with moderate to high demand levels. The supply chain remained efficient, with no major disruptions reported. Demand was primarily driven by sectors like Automobile, Home Furnishing, Fashion, and Retail, which maintained consistent levels of interest in Leatherette products. Additionally, the correlation between production costs and pricing dynamics remained steady, with minimal impact from raw material price changes. In India, the market witnessed the most significant price changes, with moderate increases recorded. Despite this, the overall trend in the country reflected a stable pricing environment. Seasonal factors and inventory management strategies played a role in price adjustments. Notable disruptions or plant shutdowns were not reported during the quarter, further supporting the stable market conditions. The quarter-ending price for Leatherette Paper (Gold Color) in India stood at USD 2822.12/MT CFR Mumbai, indicating a consistent and stable pricing trend throughout Q3 2024.
Europe
In the European market, leatherette prices are experiencing a challenging trend as suppliers navigate shifting feedstock costs and subdued demand from major sectors. PU resin prices decreased by 1.68% in the previous quarter but saw a slight 0.54% rise in Q3. Meanwhile, PVC prices increased by 0.94% from the previous quarter and surged 3.7% during Q3, adding pressure on production costs. Despite these feedstock fluctuations, suppliers have found it difficult to raise prices due to weak downstream demand, especially from the automobile sector, where sales remain lower compared to the previous quarter. Economic underperformance across Europe has dampened consumer spending, impacting key markets like fashion, retail, and furniture, all of which are significant consumers of leatherette. As a result, suppliers are taking a cautious approach, balancing the increased costs of raw materials with the need to remain competitive in a market where demand is not strong enough to support price hikes. This has led to a stagnation in price movements, keeping leatherette prices under pressure.
For the Quarter Ending June 2024
North America
The leatherette market is currently navigating a challenging price trend, shaped by various dynamics within the sector. Despite these difficulties, there are positive signals in key areas. The automobile sector continues to show strong performance, driven by ongoing innovation and robust demand for automotive interiors.
Similarly, the home furnishing and fashion & retail sectors are experiencing growth, which is positively impacting the leatherette market. Feedstock updates reveal mixed influences: PVC prices have risen by 4.2% in Q2 due to increased production costs and supply chain issues, leading to higher costs for leatherette manufacturers. Conversely, PU resin prices have decreased by 1.5%, offering some reprieve from cost pressures.
In the USA, these feedstock fluctuations are creating a nuanced impact on leatherette pricing. The increase in PVC costs is pushing prices higher, while the reduction in PU resin costs provides a partial offset. Overall, while the leatherette market faces price volatility, the positive performance in critical sectors and the balancing effects of feedstock changes demonstrate its resilience and adaptability.
APAC
In Q2 2024, the APAC region experienced a pronounced escalation in Leatherette prices, influenced by several key factors. Robust demand from the downstream sectors such as Automobile, Home Furnishing, and Consumer Goods played a pivotal role in driving market prices upward. The continuous rise in Polyvinyl Chloride (PVC) prices due to extended buildup activities significantly impacted production costs. Meanwhile, the decline in Polyurethane prices indicated a sufficient supply in the feedstock market, contributing to the complex pricing dynamics. Focusing on India, which saw the most substantial price changes, the Leatherette market was heavily influenced by various market forces. The ongoing economic activities, despite a slight dip in the Purchasing Managers' Index (PMI), remained robust, fostering a positive pricing environment. The anticipation of continued price increases for PVC, coupled with the proactive inventory management by market participants, bolstered the pricing structure. Additionally, the Indian market faced challenges in the footwear sector due to Bureau of Indian Standards (BIS) regulations, impacting overall demand. In summary, the Leatherette pricing environment in Q2 2024 in India was characterized by a consistent upward trajectory, reflecting a positive market sentiment. The quarter concluded with Leatherette Paper (Gold Color) priced at INR 232502/MT CFR Mumbai, underscoring the significant price inflation observed throughout the period.
Europe
The leatherette market in Europe is currently grappling with a challenging price trend, influenced by a mix of sector-specific and feedstock-related factors. While the automobile sector is showing signs of positivity, driven by a steady demand for high-quality automotive interiors and innovative designs, the home furnishing and fashion & retail sectors are experiencing downturns. This mixed performance is impacting the overall demand for leatherette. Feedstock updates are adding to the complexity: PVC prices have increased by 4.4% in Q2 due to rising production costs and ongoing supply chain disruptions. This has exerted additional pressure on leatherette pricing. Furthermore, APU resin prices have surged by 7.8%, exacerbating cost pressures for manufacturers. These significant increases in feedstock costs are contributing to the overall challenging pricing environment for leatherette products across Europe. Despite the difficulties, the positive trends in the automobile sector provide some hope for stabilization and potential growth. However, the combined effect of escalating feedstock prices and sector-specific downturns is creating a tough landscape for the leatherette market, necessitating careful management and strategic adjustments by manufacturers.
For the Quarter Ending March 2024
North America
In the USA region, the Leatherette market is experiencing a surge in demand across sectors, including automobile, fashion, retail, and home furnishing in the Q1 of 2024. The outperformance in economic activities has significantly stimulated demand for Leatherette, indicating its integral role in various industries.
In the downstream Automobile market, total 3797420 units sold in the respective period marking a positive performance in the Automotive market signaling 2.83% decline from previous quarter but increasing month on month growth. Despite this robust demand, the price trend for Leatherette reflected a consolidated pattern, with accumulation occurring on a needy basis. This suggests that while demand is strong, suppliers are managing their inventories carefully, possibly to maintain stability in pricing amidst fluctuating market conditions.
Despite the heightened demand, the cautious approach to inventory management may lead to a slight oversupply situation, thus exerting downward pressure on prices. However, it's important to note that Leatherette is a versatile material with diverse applications, and its demand is closely linked to economic activities and consumer preferences.
APAC
In the APAC region, the Leatherette market shows a consolidated trend, with accumulation occurring based on specific needs. Despite the automotive, fashion, retail, and home furnishing sectors experiencing an upsurge in demand, the market witnesses a 1.27% decline in price, marked by 274508 INR/MT Ex-Mumbai from Q4 2023 to Q1 2024. The decline may be attributed to various factors, including the lunar year holidays in major Southeast Asian countries, leading to a slump in demand from downstream core markets.
However, the Indian market notably outperformed during this period, indicating regional disparities in demand dynamics. In the Automobile market total 1187081 Units of Automobile manufactured in this Quarter marking a robust sale in this respective period. Nevertheless the Chinese market also witnessed positive economic activities after the Lunar Year holidays which has counterbalanced the decline demand for the Holidays sessions.
Despite the overall market stability, the decline in price suggests possible oversupply or subdued demand in certain segments. Suppliers may be adjusting their accumulation strategies in response to market conditions and sectoral fluctuations.
Europe
In Q1 2024, the European Leatherette market faces a challenging landscape characterized by lower economic performance and moderate demand from the automobile and the Construction sectors in the European major economies like Germany, France, Netherlands. While the outperformance in the Italian and Spanish market. This combination of factors has exerted downward pressure on Leatherette prices, presenting significant hurdles for market participants.
The sluggish economic performance across various European regions has dampened consumer spending and investment, thereby reducing overall demand for Leatherette products from the Automobile, Fashion & Retail, and the Home Furnishing sectors. Additionally, while the automobile sector typically represents a significant portion of Leatherette consumption, the current moderate demand from this sector further exacerbates the pricing challenges.
Suppliers are grappling with the need to balance production levels with subdued demand, leading to intensified competition and price pressures in the market. Navigating this environment requires agility and strategic decision-making from industry players as they seek to adapt to changing market conditions and maintain profitability amidst challenging economic circumstances.
For the Quarter Ending December 2023
North America
The leatherette market in the United States experienced challenging prices trend during the recent period. The pricing dynamics were influenced by various factors, including raw material costs, supply chain disruptions, and shifts in consumer demand. The cost of raw materials, such as synthetic fabrics and polymers used in leatherette production, played a significant role in determining overall pricing.
Fluctuations in the prices of these inputs, often driven by global market trends and supply chain challenges, directly impacted the cost structure for leatherette manufacturers. Supply chain disruptions, both domestic and international, also contributed to price fluctuations. Disruptions in the availability of key components or delays in shipping and logistics could create imbalances in supply and demand, influencing market prices. Additionally, shifts in consumer preferences and demand for leatherette products, such as upholstery, automotive interiors, and fashion accessories, played a role in shaping pricing trends.
In terms of the downstream market the overall Automobile sector witnessed a robust performance influencing the overall demand for the Leatherette. Overall, the leatherette market in the US witnessed fluctuations as it responded to a dynamic interplay of raw material costs, supply chain challenges, and evolving consumer demands.
APAC
The Leatherette market in the APAC region experienced a challenging fourth quarter of 2023 (Oct-Dec) due to various factors impacting prices. Firstly, disruptions in the supply and demand chain significantly affected the market, leading to a bearish sentiment. Additionally, the decrease in prices of feedstock fabrics like Polyester yarn and Cotton, influenced by the decline in crude oil prices, played a crucial role in the decrease in Leatherette prices. Moreover, the moderate to low demand from sectors like Retail Fashion, Clothing, Footwear, and Automobile further contributed to the downward trend. The primary reasons for this decline were the lowered prices of feedstock fabrics like Polyester yarn and Cotton in the market, which impacted the pricing of Leatherette derived from crude oil. Additionally, the disruptions in the supply and demand chain and the moderate to low demand from various sectors in India played a significant role in the price decrease. There were no reported plant shutdowns during this quarter that affected the Leatherette market. The latest price of Leatherette Paper (Gold Colour) CFR Mumbai in India for the current quarter is 2816 USD/MT marking a decline of 2.89%.
Europe
The European Leatherette market has encountered challenging demand, with a discernible impact stemming from a decrease in automobile sales. The connection between the automotive industry and the demand for leatherette, widely used in vehicle interiors, has been a key determinant of market dynamics. The decline in automobile sales, influenced by factors like economic uncertainties, stringent emission regulations, and shifts in consumer preferences, has led to a consequential reduction in the demand for leatherette products. As automotive manufacturers grapple with lower sales figures, the ripple effect extends to suppliers and manufacturers in the leatherette market. The decreased demand has prompted a reassessment of pricing strategies and production levels to align with the prevailing market conditions. Global economic factors, including supply chain disruptions and fluctuations in raw material costs, have also contributed to the overall pricing volatility in the European leatherette market. The industry faces the dual challenge of adapting to decreased automobile sales and addressing broader market dynamics. Stakeholders are navigating through these challenges, seeking innovative solutions to maintain competitiveness and sustainability in a market characterized by evolving consumer behaviours and economic uncertainties.
