Thursday, May 3, 2012

CHENNAI LEATHER MARKET


V.M. Khaleelur Rahman

There seems to be no change in the Chennai leather market. Exporters of leather and leather products are covering their requirements of different items of goat and sheep skins at almost unchanged prices.

The prevailing prices of tanned goat skins are somewhat as follows:

3/7 sq. ft. ABC suedes Rs.58 and All Suedes upto heel grip Rs.50

3/5 or 4/7 sq. ft. grain selection Run Rs.65, V/IF Rs.55, LIF Rs.45, Lining Rs.39 and Rejection Rs.30

Tanners sometimes sell their “goat lots” (all sizes and selections put together as received from the tannery) at different prices depending on the quality and selections.

4/7 sq. ft. Wet blue sheep skin lots are sold at prices ranging from Rs.55 to 65. It consists of mostly medium and lower selections and a small percentage of higher selections not exceeding 10%.

4/7 sq. ft. Crust sheep skin Run selections are sold at around Rs.80 and Medium and Lower selections at around Rs.55 and 40.

(Above prices are per sq. ft.)

It is generally believed that there is shortage of tanned skins as many small tanners have either stopped or curtailed their productions due to ruling high prices of raw skins in almost all centres in the country. The business concluded by some Chennai based exporters of leather and leather products during the Asia Pacific Leather Fair (APLF) held in March in Hong Kong and Lineapelle leather fair held in April in Bologna is said to be the cause for the leather market remaining firm here and prices not coming down. However it does not mean that any big business was done by all or most of the participants of the above fairs. According to available information the fairs were successful in the sense that they attracted quite a large number of exhibitors and trade visitors and gave them an opportunity to study the market trends and interact freely with the people connected with the leather and leather products industry world over. There were more sellers than buyers and the business concluded was mostly with big and reliable tanners and exporters of leather and leather products.

As far as export business is concerned, tanners and exporters say that they are not able to get prices at workable levels. While the European customers are slow in purchases, Hong Kong and Singapore buyers show interest for 3/5 and 4/6 sq. ft. goat medium grade upper and lining leathers at around US$2.00 and 1.40 per sq. ft. C&F and some business is taking place at around these prices but high quality and high grade upper leathers are not easily salable by all.

Current offers of exporters are at around the following prices:

GOAT LEATHERS

Material Size/sq.ft. Substance Selection Price US$ per sq. ft. C&F

Goat upper leather 3/5 0.6/0.8 mm ABC/D/E 2.40/2.10/1.80

Goat suede leather 3/5 and 4/7 0.6/0.8 mm ABC/D/E 2.10/1.80/1.60

Goat lining leather 3/5 and 4/6 0.5/0.7 mm TR-1/2/3 1.50/1.40/1.30



SHEEP LEATHERS

Material Size/sq.ft. Substance Selection Price US$ per sq.ft. C&F

Sheep suede/cabretta leather 4/7 0.6/0.8 mm ABC/D/E 2.50/2.00/1.50

Sheep Suede/cabretta leather 6/9 0.8/1.00 mm ABC 2.75

Sheep lining leather 3/5 and 4/7 0.5/0.7 mm TR-1/2/3 1.70/1.60/1.50

Tanners say that they are not able to do any big business now but there may be exceptions. Generally speaking only “patchy” business is taking place in the market. Overseas customers are not as enthusiastic as before in concluding contracts. They do business cautiously for the sake of continuity with regular suppliers.

It is learnt that even big manufacturers of leather and leather products find it difficult to import wet blue hides and skins from abroad due to abnormal increase in prices and internal problems in some Arab countries.

It is surprising to market observers and industrialists that despite limited interest shown by overseas customers for leather and leather products, prices of raw hides and skins have not come down in our country as well as abroad. The present market is undoubtedly a tough one.

(Indian Leather, May 2012)



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