A GLIMPSE OF THE RECOVERING LEATHER MARKET

A GLIMPSE OF THE RECOVERING LEATHER MARKET

V.M. KHALEELUR RAHMAN


A holiday mood prevails in the leather industry as far as export business is concerned perhaps more than ever before. It is learnt that overseas customers took more holidays this time for the merry Christmas and the happy New Year 2010 and celebrated it with all devotion, gaiety and happiness. However there were some activities in the domestic Indian leather market. It is hoped that the new year will open a new chapter bringing increased growth and export as the industry and the government are making all out efforts to bring back the situation to normalcy.

We understand that the leather market in Chennai is recovering fast from its slow tendency. There are good enquiries for various descriptions of tanned, crust and wetblue goat and sheep skins from different shoe, garment and leather goods manufacturers. But availability of tanned goat skins continues to be limited as arrivals are short since many tanners have given up doing this item due to unworkability of prices and payment delays.

In tanned goat skins stout Run/V grade was sold at around Rs. 40, 4/7 lining A/B/C at Rs. 30/26/21 respectively and Rejection at around Rs.18, all per sq.ft. but big quantities were not available in the market. Some sales were also reported in wet-blue and crust goat and sheep skins at different prices depending on size, quality and selection, but normal market is yet to be restored.

Even in Erode – a big centre for wetblue cow hides – business was patchy. Interest shown by shoe manufacturers was mostly for higher grades which were not easily available. Many tanners preferred to sell their higher and lower grades combined in this item.

In raw skins centres like Miraj, Solapur, Kanpur, Mumbai, Hubli, Dharwar, Bangalore, Channai etc. buying interest for raw hides and skins was somewhat better at buyers’ prices.

Export market for finished goat upper and lining leathers continues to be slow due to prevailing worldwide market conditions and New year holidays. Some contracts concluded in finished goat middle grade upper leathers were at around US$1.50 and lining leathers were at around US $1.10/1.00/0.90 per sq.ft for TR-1/TR-2/TR-3. However tanners and exporters are optimistic that the New Year 2010 will open a new chapter for increased and good volume of business as witnessed till about a year ago. Some of the export quotations were as follows:

F/C goat upper leather

Size : 3/5 or 4/7 sq.ft. per piece, Grade : ABC, Price : US$1.70, Grade : D, US$1.50 per sq.ft. C&F

F/C goat lining leather

Size : 4/7 sq.ft. per piece, Grade : TR1 / TR2 / TR3, Price : US$1.10 /1.00 /0.90 per sq.ft. C&F

S/C goat upper leather

Size : 3/5 or 4/7 sq.ft. per piece, Grade : ABC, Price : US$1.75, Grade : D, US$1.55 per sq.ft. C&F

S/C goat suede leather for garment

Size : 4/7 sq.ft. per piece, Grade : ABC, Price : US$1.80 per sq.ft. C&F

S/C goat lining leather

Size : 4/7 sq.ft. per piece, Grade : TR1 / TR2 / TR3 – Price : US$1.15 /1.05 / 0.95 per sq.ft. C&F

F/C sheep suede leather

Size : 4/7 sq.ft. per piece, Grade : All Suede, Price : US$2.00, Grade : D, US$1.70, Grade : Rejection

US$1.40 per sq.ft. C&F (VMK in Indian Leather, January 2010 issue)
-----------------------------------------------------------------------------------------


TWO IMPORTANT EVENTS IN FOCUS

India International Leather Fair 2010 and Buyer-Seller Meet to be held in Chennai and New York respectively during January/February 2010 are in focus now to the leather and leather products industry.


INDIA INTERNATIONAL LEATHER FAIR IN CHENNAI

As we are aware, the 25th India International Leather Fair (IILF) is to be held from 31st January 2009 to 3rd February 2010 at Chennai Trade Centre in Chennai. The report of the great interest being shown by the leather and leather products fraternity to participate in it gives an indication that they are prepared to beat the global recession fully and by all means. The Council for Leather Exports as the main co-sponsor of the fair is playing an important role in making it more useful. The B2B meeting scheduled for 1st February 2010 from 9.00 A.M. to 5.00 P.M. between Indian sellers/exporters and overseas buyers/importers for market tie-ups and joint ventures/collaborations will be an important and attractive event.

BUYER-SELLER MEET IN NEW YORK

A Buyer-Seller Meet is organised by the Council for Leather Exports, India at Gershwin Ballroom in New York on 18th and 19th January 2010 from 9.00 A.M. to 6 P.M. It is learnt that about 25 Indian exhibitors are to take part and display their fine and fashionable leather garments and goods/accessories in the Meet.
--------------------------------------------------------------------------------------