For the Quarter Ending December 2023
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.
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%.
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.