For the Quarter Ending September 2025
North America
• In the USA, the Leatherette Price Index remain challenging quarter-over-quarter, reflecting balanced supply and steady downstream activity.
• Leatherette Spot Price trended stable-to-firm as suppliers maintained controlled allocations to preserve margins.
• Leatherette Price Forecast suggests mild fluctuations through late Q4 amid mixed economic signals and inventory alignment.
• Leatherette Production Cost Trend was steady with manageable PVC resin costs and improved additive supply across Gulf producers.
• Leatherette Demand Outlook remains steady, supported by consistent automotive upholstery and contract furniture orders.
• Leatherette Price Index steadied after earlier volatility as downstream converters maintained planned procurement volumes.
• Export demand to Latin America and Canada provided additional support to offset domestic margin constraints.
Why did the price of Leatherette change in September 2025 in North America?
• Stable downstream automotive and furniture orders sustained baseline demand, preventing price declines.
• Improved feedstock supply and stable production costs allowed for consistent producer offers.
• Export inquiries from neighboring markets added marginal firmness to spot prices, maintaining overall stability.
APAC
• In India, the Leatherette Price Index fell by 3.43% quarter-over-quarter, reflecting subdued orders, cautious procurement.
• The average Leatherette price for the quarter was approximately USD 2657.75/MT across CFR-Mumbai deliveries and hubs.
• Leatherette Spot Price strengthened mid-quarter due to currency depreciation increasing landed import costs for China-origin shipments.
• Leatherette Price Forecast reflects modest upside into autumn supported by festive season restocking and constrained import arrivals.
• Leatherette Production Cost Trend remained manageable as PVC resin and plasticizer supplies stayed adequate across Asia.
• Leatherette Demand Outlook is stable with automotive, furniture, and real estate sectors providing steady consumption support.
• Leatherette Price Index pressure eased as suppliers avoided aggressive discounts to prevent further inventory accumulation.
• Margins were cushioned by softer feedstock prices, keeping producer selling intentions conservative despite firmer downstream demand.
Why did the price of Leatherette change in September 2025 in APAC?
• Elevated inventories and cautious buyer procurement reduced spot volumes, applying downward pressure on import prices.
• Currency depreciation increased landed costs for imports, prompting suppliers to pass through higher import-related expenses.
• Monsoon and port congestion caused intermittent delays, tightening short-term availability and supporting upward pricing pressure.
Europe
• In Germany, the Leatherette Price Index remain under pressure quarter-over-quarter, reflecting gradual recovery in downstream consumption.
• Leatherette Spot Price firmed through September as seasonal demand from the furniture and automotive upholstery sectors improved.
• Leatherette Price Forecast indicates moderate stability through Q4 as restocking sustains offtake while feedstock costs remain steady.
• Leatherette Production Cost Trend showed minor increases as PVC resin prices strengthened and energy tariffs stayed elevated.
• Leatherette Demand Outlook remains positive with renewed activity in the construction and refurbishment segments across Western Europe.
• Leatherette Price Index gained momentum as suppliers restored margins after prior discount-led quarters.
• Logistics disruptions in Northern Europe and tight container availability supported localized price firmness across key hubs.
Why did the price of Leatherette change in September 2025 in Europe?
• Seasonal restocking in the furniture and interior sectors supported higher consumption, lifting regional Leatherette prices.
• Rising PVC and energy costs modestly increased production expenses, prompting upward pricing adjustments.
• Port delays and container shortages limited prompt deliveries, creating short-term tightness and regional price firmness.
For the Quarter Ending June 2025
North America (USA)
• The Spot Price for leatherette in North America showed a moderate rise in Q2 2025, driven by stable raw material availability and gradual pickup in demand.
• Supply remained steady, with production running at normal capacity and sufficient stock levels among distributors.
• The Production Cost Trend was influenced by resilient feedstock prices (PU/PVC base), although rising labor and logistics expenses slightly compressed margins.
• The Demand Outlook turned cautiously optimistic, as automotive upholstery and contract furnishing segments began to recover.
• Price Forecast suggests continued moderate upward momentum into Q3 2025 if order activity sustains in core sectors.
Why did the price of Leatherette change in July 2025 in the US?
• Leatherette prices rose as demand from the furniture and automotive interiors segments strengthened following a period of cautious procurement earlier this year.
• Inland freight and handling costs climbed steadily in July, contributing to upward cost pressure across the supply chain for local distributors.
• Import prices firmed due to a weaker U.S. dollar and higher global shipping costs, prompting domestic suppliers to realign their offers.
• Improved retail sentiment and increased orders from upholstery manufacturers led to active restocking, further supporting a firmer price trend.
Europe
• The Spot Price in Europe came under pressure, reflecting a weak Q2 2025 market characterized by sluggish construction and commercial furnishing activity.
• Supply conditions were stable with balanced output and inventory levels, though some import delays added to localized inefficiencies.
• The Production Cost Trend remained unchanged, with feedstock prices neutralized by soft demand and muted energy volatility.
• The Demand Outlook remained gloomy, especially in Southern Europe, as new furniture and automotive orders declined.
• Price Forecast points to continued pricing strain unless stimulus or seasonal restocking revives order books.
Why did the price of Leatherette change in July 2025 in Europe?
• Automotive and furniture producers in key EU markets like Germany and France resumed purchases, signaling a rebound in downstream order volumes.
• Rising costs for solvents, processing chemicals, and PVC feedstocks led European suppliers to increase Leatherette prices to protect margins.
• Freight surcharges and tightened import compliance raised the cost of imported Leatherette, narrowing the gap between domestic and offshore pricing.
• Distributors reported increased buyer engagement, with converters gradually rebuilding stock, contributing to stronger price justification across the region.
APAC
• The Spot Price for leatherette in APAC fell by 0.7% Q-o-Q in Q2 2025, reflecting oversupply and restrained downstream movement.
• Supply remained ample, with consistent production across China and steady inflows into Southeast Asia.
• The Production Cost Trend dipped slightly due to lower feedstock prices and continued exchange rate benefits for exporters.
• The Demand Outlook stayed soft, particularly in footwear and lower-tier automotive applications.
• Price Forecast suggests limited short-term recovery unless festivals and construction spending accelerate.
Why did the price of Leatherette change in July 2025 in APAC?
• Automotive and upholstery manufacturers in countries like China and India increased bulk purchases, anticipating stronger seasonal demand across the third quarter.
• Inventory levels across the region tightened, prompting converters to restock, giving suppliers greater room to firm up their offers.
• Logistics efficiency improved, but rising operational costs encouraged producers to adjust offers upward to maintain profitability amid healthy downstream activity.
• Positive economic performance in the APAC region is stimulating the Leatherette consumption across the various downstream sectors.
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.
