CHENNAI LEATHER MARKET - DECLINE IN EXPORTS - US DOLLAR TERMS

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

Demand continues for tanned goat skins as usual in the Chennai leather market but availability is limited as many small tanners have either curtailed or stopped their productions due to abnormal rise in prices of raw skins everywhere in the country.

Raw goat skins are sold at around Rs.250 in different centres and in places like Miraj prices are up to Rs.300 depending on the quality and selection. Small tanners are finding it very difficult to operate and feel that a dangerous situation is prevailing in the leather market.

Exporters of leather products continue to buy tanned goat skins at either unchanged or somewhat higher prices. It is learnt that some tanners are able to sell 3/5 and 4/7 sq. ft. grain selection ABC grade at around Rs.85, Suede selection ABC at around Rs.75, All Suede selection at around Rs.70 and All Suede up to Heel grip at around Rs.65. Even the prices of Lining TR1/2/3 have gone up to Rs.46/44/42 and Rejection up to Rs. 32 per sq. ft. The prices of wet blue goat skins are also ruling high almost at around the above prices.

As far as export business is concerned, there is limited demand and overseas customers are not very particular in having contracts at higher prices. Exporters are worried about this state of affairs. They are not able to get their reasonable asking prices from overseas customers. However some big exporters are reported to be having regular business but in reduced quantities.

Quotations of exporters are at around the following prices:

DECLINE IN EXPORTS – US DOLLAR TERMS

The following DGCI & S report shows that there is a decline of 2.16% in terms of US dollar and an increase of 14.75% in terms of Indian Rupee in the export of leather and leather products during the period April-November 2012 as against the performance during the same period in 2011.

                                                                                                                                   (Value in Million Rs)

It is reported that there is also some decline in the export during the recent two months. Exporters consider the increasing leather prices as the main cause for the decline in the export. The heavy competitions from customers in China and Pakistan are causing much headache to Indian exporters.

VMK in Indain Leather, February 2013 issue)

AMES College of Education, Ambur student secures first rank in the State

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/honour-for-ambur-student/article4293313.ece

At the third convocation of Tamil Nadu Teachers Education University, S. Sathya of A.M.E.S. College of Education, Ambur, received B.Ed degree, seven medals and cash prize for securing the first rank in the State and in Tamil Nadu Teachers Education University for 2011-2012 from Governor K. Rosaiah, according to a release.

The third convocation of the university was conducted on December 30, 2012. The Governor presented the degrees and awards to candidates, who had passed during 2010-2011 and 2011-2012 . Higher Education Minister Palaniappan was present, the release said.

Sathya, a student of A.M.E.S. College of Education, Ambur, run by the Ambur Muslim Educational Society, secured total marks of 878 out of 1,000 and stood first.

N. Mohamed Zackriah, president of Ambur Muslim Educational Society, and N. Mohammed Sayeed, secretary, congratulated the student, the release added.

He received B.Ed degree, medals and cash prize for securing first rank in the State and in teachers education university.

(Courtesy: The Hindu, 10th January 2013)

CHENNAI LEATHER MARKET AND IILF 2013

CHENNAI LEATHER MARKET AND IILF 2013

V.M. Khaleelur Rahman

Due to Christmas and New Year holidays, leather market everywhere particularly abroad is very slow with limited activities. While in the local market demand for tanned goat skins continues as usual and prices for different selections like Grain, Suede and Lining are on the high side because of increased demand and purchases by different leather and leather products manufacturers, overseas customers are not enthusiastic in paying the asking prices of exporters here. But some exporters enter into contracts even at unworkable levels in leather products in order to grab as much orders as possible and keep their show in full swing.

Tanned goat skins Grain selection Run was sold at around Rs.80, V/IF at around Rs.60 and Lining at around Rs.40 whereas All Suede fetched at around Rs.58 per sq. ft. As far as Rejection is concerned, it is moving at around Rs.30 per sq. ft. Exporters of leather and leather products show interest for these items.

Offers made by some exporters of goat and sheep leathers are as follows:

S/C OR F/C GOAT LEATHERS

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

Goat upper leather 3/5 or 4/7 0.6/0.8 mm ABC 2.60

Goat milled leather 4/7 0.6/0.8 mm E 2.00

Goat suede leather 4/7 0.6/0.8 mm All Suede 2.50

Goat lining leather

3/5 or 4/7 0.5/0.7 mm TR-1/2/3 1.60/1.50/1.40

6/9 0.6/0.8 mm TR-1/2/3 1.65/1.55/1.45

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 2.70

Sheep Suede/cabretta leather 6/9 0.8/1.00 mm ABC 2.85

Sheep lining leather 3/5 or 4/7 0.5/0.7 mm TR-1 1.75

Prices of raw skins and hides are almost unchanged everywhere in the country and even abroad. The general impression of everybody is that there is more demand and less supply. No association or council seems to have done any study to find the cause and solution for this situation.

IILF 2013 – FROM 31-1-2013 TO 3-2-2013

The leather industry in India and abroad is awaiting the 28th edition of India International Leather Fair (IILF) to be organized by India Trade Promotion Organisation (ITPO) from 31sat January 2013 to 3rd February 2013 at the Chennai Trade Centre, Nandambakkam, Chennai. It will be open to business visitors from 1st February to 3rd February 2013 from 10 am to 8 pm.

More than 400 companies including 100 from more than 20 foreign countries are to exhibit their products showing latest trends, styles, designs and colours according to the ITPO. A large number of Indian and overseas visitors are expected to attend the fair.

The estimated business during the forthcoming fair is to the tune of US$ 284.4 million as per feedback from exhibitors to the ITPO

(VMK in Indian Leather, January 2013)