Global Leatherette Prices Decline Amidst Sluggish Demand and Favorable Feedstock Price

In the global market, Leatherette prices experienced a slight decrease in September. This reduction in the Leatherette price was mainly due to lower consumption from downstream sectors, such as furniture and automotive, where demand slowed. Additionally, feedstock prices showed a minor decline, further contributing to the reduction in Leatherette costs. The global logistics market also improved, leading to a drop in freight charges, which in turn supported the overall pricing dynamics, keeping Leatherette prices on a downward trend.

In the European market, the price of Leatherette held steady in September, influenced by mixed feedstock price movements and weak demand from key consumption sectors. From the feedstock market, Polyurethane resin saw a minor price drop of 0.6%, while PVC prices increased by 0.8%, which helped maintain production costs. Despite a rise in automotive sales to 208,848 units, reflecting a 5.8% month-on-month increase, demand remained weak compared to the previous year. Sectors like home furnishings, fashion, and retail, traditionally strong users of Leatherette, underperformed due to lower end-user consumption, dragging down demand. The downturn in Germany's manufacturing sector, marked by falling output, orders, and employment, further contributed to the stagnation, leaving Leatherette prices in a neutral zone despite the mixed feedstock market. The economic softness across Europe continues to pressure the Leatherette market, particularly with the downturn in industrial activity and subdued retail demand.

In the Indian market, Leatherette prices experienced a significant decline this month, largely due to lower import prices from China, its primary supplier. From the feedstock market, Polyurethane resin prices fell by 3.4%, while PVC prices remained steady, contributing to the overall decrease in Leatherette production costs for domestic manufacturers. The automotive sector saw a sharp downturn, with sales dropping by 10.8% month-on-month to 275,681 units, reflecting an 18.8% year-on-year decrease, according to the Federation of Automobile Dealers Association (FADA). This decline, along with weak demand from sectors like home furnishings, fashion, and retail, has driven Leatherette prices lower. Despite relatively stable currency fluctuations supporting import pricing, subdued downstream demand continues to exert pressure on the Leatherette market. Although manufacturing activity saw a slight dip in September, there is cautious optimism about a future recovery, but the current market remains under strain due to these various factors.

According to ChemAnalyst's forecast, Leatherette prices are expected to exhibit a stable to bullish trend in the near term. This projection in the Leatherette price aligns with the anticipated recovery in key global economies, notably China and the U.S. As China's manufacturing activity resumes after the Golden Week holidays, demand for Leatherette is expected to increase, supporting price stability. Likewise, economic recovery in the U.S. is projected to stimulate demand in sectors like automotive and furniture, driving Leatherette prices upward in the global market.