CHENNAI LEATHER MARKET

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

After holidays customers abroad have started dealing with exporters of leather and leather products and some volume of business is taking place here. The prices fetched are said to be almost the same or slightly higher. Exporters continue to struggle for covering their requirements of raw hides and skins from domestic as well as overseas market as their availability is limited everywhere particularly for good selections.

It is learnt that some exporters have sold their goat upper leathers 3/5 sq. ft. RUN at around US$2.40, Fifths at US$2.00 and Inf. Fifths at US$1.70 per sq. ft. whereas goat lining leathers TR1/2/3 have been sold at around US$1.50/1.40/1.30 per sq. ft. There is good demand for goat suede leathers. 4/7 sq. ft. All Suede leathers are sold at around US$2.20.

There are also reports of business in Sheep leathers 4/7 sq. ft. ABC Suede at around US$2.30 and 3/5 and 4/7 sq. ft. Linings TR-1 at around US$1.70 per sq. ft. Overseas market for sheep leathers is slow but domestic market is almost unchanged and producers of leather products continue to buy these leathers.

At present exporters are offering at around the following prices:

                               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	RUN/V/IF	2.50/2.10/1.80
Goat suede leather	3/5 and 4/7	0.5/0.7 mm	ALL SUEDES	2.20
Goat milled leather	4/7	0.5/0.7 mm	D/E/F	2.00
Goat lining leather	4/7	0.5/0.7 mm	TR-1/2/3 combined	1.50

                                              F/C AND S/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	2.30/1.80/1.50
Sheep Suede/cabretta leather	6/9	0.8/1.00 mm	ABC/D/E	2.50/2.00/1.60
Sheep lining leather	3/5 and 4/7	0.5/0.7 mm	TR-1/2/3	1.70/1.60/1.50

In a recent statement Mr. M. Rafeeque Ahmed, Chairman, Council for Leather Exports has said that Indian companies are focusing on high-end fashion garments and accessories and newer areas like manufacture of women’s and children’s shoes and hence we need to develop marketing particularly in the biggest China market and other markets such as Australia, New Zealand, Africa and Latin America which are developing considerably.

Indian leathers have been going to China in good volumes and there is good possibility of increasing their exports many folds. It was reported some time ago that some European tanners established their units in China because of the favourable situation there. A tanner pointed out that “China is a big market for all types of leather and leather products”.

Arrivals of tanned goat skins continue to be restricted in the Chennai market. Exporters show interest for grain selection ABC and All Suede at around Rs.65 and 55 per sq. ft. respectively whereas Linings A/B/C are salable at around the combined price of Rs.42 and Rejections at around Rs.30 per sq. ft.

(VMK in Indian Leather, October 2012)