For the Quarter Ending March 2025
North America
• The Leatherette Price Index remained stable throughout Q1 2025 in North America, supported by consistent demand from the automotive and furniture sectors.
• The Leatherette Demand Outlook was buoyed in March by a recovery in vehicle sales, leading to steady consumption for interior upholstery.
• Furniture demand remained stable, though procurement remained cautious due to subdued consumer confidence.
• Supply-side conditions were well balanced; manufacturers maintained adequate inventories and just-in-time inventory strategies prevailed amid macroeconomic uncertainty.
• The Leatherette Production Cost Trend was stable, aided by improved logistics and uninterrupted distribution throughout the quarter.
• The construction sector showed minor recovery signs but contributed little to Leatherette Spot Price trends.
Why did the price of Leatherette change in April 2025 in the US?
Leatherette prices remained mostly unchanged in April due to stable demand and balanced inventories. No significant upward or downward pressures emerged to shift the Leatherette Price Index.
APAC
• The APAC Leatherette Price Index saw a marginal upward trend during Q1 2025, driven by rising sourcing costs and currency depreciation, especially in India. The price of Leatherette was settled at USD 3308/MT on an Ex-Mumbai by the end of quarter.
• In January, the Leatherette Spot Price was stable with cautious inventory control as producers operated below full capacity (e.g., Mayur Uniquoters).
• February registered a modest price increase due to increased import costs from China and a weaker Indian rupee, impacting the Leatherette Production Cost Trend.
• March saw strong demand from the automotive and real estate sectors, particularly in India’s southern metros, lifting the Leatherette Price Index further.
• The Leatherette Demand Outlook improved toward the quarter’s end, driven by year-end buying, new automobile launches, and construction momentum.
• Footwear sector demand remained steady, whereas automotive retail sales recovered in March after a February dip.
Why did the price of Leatherette change in April 2025 in Asia?
• Following robust demand in March—especially from the automotive and real estate sectors—many downstream buyers accumulated high inventory levels.
• As April began, buyers slowed procurement to deplete stockpiles, causing reduced market activity and contributing to the 0.8% dip in the Leatherette Spot Price.
Europe
• The European Leatherette Price Index remained largely unchanged during Q1 2025, reflecting a subdued demand environment and cautious consumer sentiment.
• Automotive demand stabilized slightly, but the furniture segment remained sluggish with minimal new product offtake.
• The Leatherette Spot Price was steady throughout the quarter, with logistical challenges (port delays and congestion) having minimal overall impact due to high inventories and rerouting strategies.
• Economic optimism emerged after the ECB’s rate cut, yet broader uncertainty kept demand soft, limiting upside in the Leatherette Demand Outlook.
• The Leatherette Production Cost Trend remained flat as input prices and logistics normalized.
Why did the price of Leatherette change in April 2025 in Europe?
Leatherette prices in Europe showed no significant change in April as macroeconomic improvements failed to translate into stronger downstream demand, maintaining a neutral trend in the Leatherette Price Index.
For the Quarter Ending December 2024
North America
In Q4, the U.S. leatherette market faced challenging conditions amid shifting dynamics across key sectors. The automotive industry maintained steady demand for synthetic leather in vehicle interiors, supported by consistent production levels. However, the furniture sector encountered difficulties due to subdued retail activity and cautious consumer spending on non-essential goods, which weighed on market performance.
On the supply side, manufacturers effectively managed inventory levels despite logistical disruptions such as port congestion and transportation delays. Elevated stock availability, coupled with reduced purchasing activity in certain sectors, posed operational challenges for suppliers aiming to optimize production schedules and maintain efficiency.
Sector-specific developments further highlighted the complexity of the market. Slowing home improvement activities and commercial renovations in the furniture sector, combined with heightened competition from alternative materials, added to the cautious sentiment. Although stable automotive production offered a positive note, the overall market faced persistent headwinds, particularly from weakening demand in discretionary segments.
While innovation and sustainability initiatives continue to support long-term growth prospects, navigating the current landscape requires careful alignment with sectoral trends and evolving consumer preferences.
APAC
Leatherette demand in the Indian market exhibited a steady growth trajectory despite fluctuations in pricing trends. The automotive, fashion & retail, and home furnishing sectors played a significant role in driving demand, with improved economic conditions contributing to market stability. However, challenges such as weak market sentiment and limited product variety led to mixed performance in key sectors. Automotive sales showed contrasting results, with October witnessing strong growth, followed by a decline in November and December due to post-festive inventory and weak sentiment. Manufacturing conditions were supported by improved inventory management from suppliers, though logistical challenges led to minor delivery delays. Suppliers maintained adequate stock levels, ensuring steady material flow despite these minor disruptions. Furthermore, India's textile and apparel export sectors showed robust performance, with an increase in exports signaling positive growth in these areas. The Reserve Bank of India’s policy adjustments, including reductions in the Cash Reserve Ratio, helped bolster market liquidity, although business confidence showed a slight dip in Q3 2024. Overall, the market displayed resilience amid tighter supply conditions and managed to stabilize, reflecting a modest quarter-on-quarter increase, indicating a balanced recovery despite challenges.
Europe
In Q4 2024, the German leatherette market encountered a challenging environment, reflecting subdued demand across key sectors such as automotive and furniture. While the automotive industry showed modest improvement, supported by an increase in car registrations, activity in the furniture sector remained sluggish due to cautious consumer spending and economic uncertainties. This restrained demand was further amplified by weakened purchasing activity in discretionary segments. Manufacturers faced headwinds, with moderate inventory levels maintained amidst weak sentiment in the market. Suppliers adopted a conservative approach, with limited initiatives to boost demand as logistical challenges, including ongoing congestion at major ports like Hamburg and Antwerp, added to the operational difficulties. Sector-specific challenges also weighed heavily on market performance. The furniture segment continued to struggle due to declining construction activity and reduced home improvement projects. While the automotive sector offered some stability, its contribution was not sufficient to offset the broader market's weak performance. Despite the challenging conditions, the market benefitted from ongoing interest in sustainable and cost-effective alternatives to traditional leather, providing a glimmer of optimism for long-term prospects. However, the combination of weak demand, logistical constraints, and cautious supplier actions contributed to a restrained market outlook for the quarter.
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.
Frequently Asked Questions (FAQs):
1. What is the current price of Leatherette?
o The current Leatherette Spot Price varies by region. In Q1 2025, prices were stable in North America and Europe, while Asia (especially India) saw a modest increase of around 3% driven by currency fluctuations and higher sourcing costs. Further, in April the cost of Leatherette settled around USD 3322/MT on an Ex-Mumbai.
2. Who are the top Leatherette producers in the United States?
o Major Leatherette producers in the U.S. include companies such as Morbern, Ultrafabrics, and The Mitchell Group, which supply to automotive and furniture sectors.
3. What is the Leatherette Demand Outlook for 2025?
o The Leatherette Demand Outlook is positive in APAC, especially in automotive and real estate. North America expects steady demand, while Europe remains cautious but may see improvement as macroeconomic confidence builds.
4. What factors influence the Leatherette Production Cost Trend?
o Key cost drivers include import prices (especially from China), currency exchange rates, labor and energy costs, and logistics efficiency across regions.
