The Brazilian Congress discussed a potential tax policy change that may limit the ability of exporters and processors to monetize tax credits, which may decrease demand for Brazilian hides, according to market participants.

Europe
According to market participants, the European hide market remained under pressure during the week ended Thursday June 20. The volume of orders for finished leather did not give any signs of improvement over the prior two weeks, with top-level residential upholstery the exception.

Due to the low production pace, several tanneries switched to short-time work for one or two days per week. Buyers in the Far East significantly reduced their purchase volumes of European material in the last month, which was negatively perceived by the market. The reduced demand drove prices lower for European cow hides, which decreased by €0.05 per piece.

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