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Leather Price Rises 40%, Shuffle Is Urgent.

2011/9/21 8:53:00 47

Since the beginning of this year, the price of leather as raw material has risen by more than 40%, coupled with the continuous rise in labor costs, the leather industry is facing a grim situation.

Some practitioners told reporters that there were 60% small and medium-sized leather enterprises in danger of closing.

One person who owns his own leather processing factory said that the main raw material needed for leather industry this year rose from around 10 yuan per square foot last year to 15~16 yuan this year.

In terms of labour prices, the price of annual salary of Turner is 55 thousand yuan because of leather sewing mainly by hand sewing. Last year, only more than 40 thousand increased by 25% at least, and some skilled teachers increased to 70 thousand ~7.5 yuan a year.

Another leather garment company told reporters.

Leather

The average wage for the workers has been up for 4 years, and this year, it has risen 15%~20%, plus excipients and shop rents, and this year's leather goods have no profit if they were sold at last year's prices.

Above leather industry personages reflect, in order to offset the pressure of raw material and labor cost rising, the price of leather goods has been raised this year, but the range is only 8%~15%, which is far lower than the increase of raw material cost by more than 40%. Even though the price increase is limited, the market demand for leather goods has declined significantly.

Insiders say that the number of customers receiving goods is about half this year, and the order amount is also decreasing.

In previous years, if a small enterprise, if the annual sales volume is 10 thousand pieces, usually to 9~10 months, the production of leather goods has reached about 7000, this year, only about 4000 pieces.

Haining

Leather City

[24.38 -0.33% shares bar Research Report] (002344.SZ) chairman of the Law yesterday, told reporters this year.

Leatherwear

The industry is faced with many unfavorable factors such as raw materials, labor and financing costs. Some small-scale enterprises and newly established leather enterprises have greater pressure to survive. However, the profit situation of each factory in the leather industry is abnormal. The 10% elimination rate of leather industry contributes to the development of the industry.

Another Haining listed company in Hongkong, Carson international [1.25 0.00%] (00496.HK), has felt the cold wave of leather industry.

Due to the sharp rise in leather and wages and the weak demand in Shanghai, Carson international furniture and leather manufacturing business has only 738 million 600 thousand yuan in the first half of this year, a decrease of 19.1% compared with the same period last year. This part of the business lost 14 million 200 thousand yuan, compared with 85 million 100 thousand yuan in the same period last year.