UNUNDERSTANDABLE LEATHER MARKET

V.M. Khaleelur Rahman

One fails to understand the present leather market. It may be good for some but certainly not so for many despite ruling high prices and so called “good demand”. However in the Chennai leather market tanned and wet blue tanners are able to get good support from products manufacturers who are in need of these items. Enquiries reveal that shoe manufacturers continue to buy tanned goat skins higher grain selections at around Rs.60, All Suedes at around Rs.53 and Linings at around Rs.42 per sq. ft. respectively and other lower grades are not in as good demand as before. On the whole the robust demand which existed for hides and skins till recently seems to be somewhat on the decline. Sheep leathers are slow in movements but there is not much reduction in prices quoted by tanners. Perhaps same is the case in buffalo calf, cow calf and hides. Generally speaking even big tanners are in a fix not knowing the future trends of the market here as well as abroad.

Export Contracts

Export market is also slow particularly in Europe. Countries like Hong Kong, Singapore, Taiwan etc. are in the market operating in their regular items mostly in lining selections at around US$ 1.50 per sq. ft. C&F. Every customer seems to be cautious. Only those importers who require goods immediately operate in the market and speculators are mostly absent because of the present high prices and unpredictable market conditions. The leather fairs held recently in different places in India and abroad were considered to be of little use without considerable contracts. There seems to be some decline in exports also.

Offers made by tanners are at around the following lines:

F/C AND S/C GOAT LEATHERS

Material	Size/sq.ft.	Substance	Selection	Price US$ per sq. ft. C&F
Goat upper leather	3/5 and 4/7	0.6/0.8 mm	ABC	2.40
Goat suede leather	3/5 and 4/7	0.5/0.7 mm	ABC	2.20
Goat lining leather	4/7	0.5/0.7 mm	TR-1/2/3	1.60/1.50/1.40

F/C 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	2.40/1.90/1.50
Sheep Suede/cabretta leather	6/9	0.8/1.00 mm	ABC/D/E	2.60/2.10/1.60
Sheep lining leather	3/5 and 4/7	0.5/0.7 mm	TR-1/2/3	1.70/1.60/1.50

While the market situation is as the above, there are reports of some Ambur based exporters of leather and leather products having concluded some big contracts. However the clear picture of the market will emerge only after the holidays in September. (VMK in Indian Leather, August 2012)

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