LEATHER MARKET TRENDS AT HOME AND ABROAD

LEATHER MARKET TRENDS AT HOME AND ABROAD


V.M. KHALEELUR RAHMAN

There is good demand for many items of leather with orders coming in from different domestic as well as overseas customers. Shoe manufacturers show interest for tanned and wet blue goat skins in upper and lining selections. As there is shortage in arrivals of these items in the Chennai market, prices are on the increase. Tanners and traders who are having stock are able to fetch higher prices but payment terms are not favourable. They have to wait at least for a month or so to get the payment. There is also increase in prices of raw hides and skins in almost all centres in the country. The hectic activities by big tanners and shoe manufacturers have made the prices go up. Many small tanners and exporters are in a fix not knowing how to operate in the market at the present juncture.

PRICE INDICATIONS

Tanned goat skins – upper, suede and lining selections are moving at around Rs. 45/-, 40/- and 30/- per sq.ft. respectively. Some better qualities and better selections are salable even at much higher prices.

Garment manufacturers show interest for high quality sheep nappa leathers at around Rs.80/- per sq.ft. whereas sheep suede leathers for shoes are salable at around Rs.70/- per sq.ft.

Erode tanners say that they have good demand for their wet blue cow hides but higher grades are not available with them to the extent the shoe manufacturers require now. This is the reason why more and more shoe units have to depend on imports for their requirements. Shoe factories in places like Ambur, Melvisharam, Ranipet, Chennai etc. are operating well and increasing their production despite some constraints.

EXPORT ORDERS

There is somewhat increased interest for goat upper and lining leathers by overseas buyers. 3/5 and 4/7 sq.ft. goat upper leathers ABC and D/E/F are quoted at around US$1.90 and 1.50 per sq.ft. respectively and 3/5 and 4/7 sq.ft. lining leathers TR1/2/3 are offered at around US$1.10/1.00/0.90 per sq.ft. respectively. Garment suedes in both goat and sheep leathers are also in good demand at prices depending on the quality and selection. While 3/5 sq.ft. goat suede leather ABC is quoted at around US$1.65, 4/7 sq.ft. goat milled leather ABC is offered at around US$1.70 per sq.ft.

But small exporters do not want to accept export orders because of the existing rigid and irrational norms for identification of finished leathers. This is the reason why activities in finished leather exports are not very much in comparison with the past.

According to reliable sources, Far East customers are showing more interest for the above items.

MEET AT AGRA 2010: A MEGA LEATHER SHOE FAIR

The Agra Footwear Manufacturers & Exporters Chamber (AFMEC), Agra is arranging its 4th edition of the annual Leather Footwear, Components and Technology Fair on 30th and 31st October 2010 at Kalakriti Grounds, Fatehabad Road in Agra. It was started in 2007. It is a very good and useful show, improving year by year and attracting participants from India and abroad. According to reports more and more people from Tamil Nadu and other parts of the country are showing interest to participate in it this year. It is expected that there will be some important business visitors from abroad also. The Meet is going to showcase the latest developments in footwear, footwear accessories, finished leathers, chemicals, adhesives, machinery, etc. It is proving its mettle well. As AFTEC says it will be a good platform for manufacturers, suppliers, traders and consultants from across the country to exchange ideas and business opportunities in the field of leather and footwear products. Agra is also well known for its well established footwear industry.

LINEAPELLE LEATHER FAIR

The very popular Lineapelle Leather Fair is to be held from 12th to 14th October 2010 at Bologna in Italy. It is one of the important fairs in which leather and leather products exporters are interested to participate in. It is reported that as usual many are getting ready to attend it with the hope that it will be favourable in every respect this year as the world situation is changing fast for the better.

(Indian Leather, October 2010)