CHENNAI LEATHER MARKET - SEPTEMBER 2013

CHENNAI LEATHER MARKET

V. M. Khaleelur Rahman

Activities in the Chennai leather market are slow. Tanners are not able to sell their tanned and wet blue goat and sheep skins as easily as they could a couple of months ago.  As far as prices are concerned, there is about 10% decline in goat suede leathers but prices in goat lining leathers are almost unchanged in big sizes and about 5% decline in normal sizes.  Despite more than 20% advantage in exchange per US dollar for exporters, business is slow both at home and abroad.

The prevailing prices in the local market are as follows:

E.I. Tanned goat skins:

4/8 sq. ft. All Suede Rs. 56/- and Heel Grip Rs. 47/- per sq. ft.

4/7 sq. ft. Lining Rs. 46/-,  5/8 sq. ft. Lining Rs. 51/- and Rejection Rs. 31/- per sq. ft.

E.I. Tanned Red hair sheep skins:

5/7 sq. ft. Run selection Rs.90/- per sq. ft.

Wet blue goat skins

4/7 sq. ft. Lot Rs. 50/- per sq. ft.

People who are in the leather trade know that prices may differ from item to item and on the basis of requirements and selections of buyers.

Tanners complain that exporters of leather and leather products who operate in the local market are not paying workable prices to them in spite of getting better exchange rates for their exports. They say that now they have to pay Rs.1,32,000 per ton of wattle extract powder, required for E.I. tanning, which is Rs.10,000 higher. There is also financial crunch in the market.

Export Contracts

As regards exports, it is learnt that some exporters have sold their Goat Linings 4/7 sq. ft. at around US$ 1.40 per sq. ft. and Upper leathers at around US $2.25 per sq. ft. C&F. Some big exporters might have fetched higher prices for these items but information is not available. It is said that even in Suede leathers some patchy business have taken place at different prices depending on the quality and selection. But fact is that market is slow and particularly small exporters are worried.

An exporter told me that while even regular Italian buyers are slow in business, some Spain and Portugal customers have shown interest for goat leathers which is considered to be a good sign for future business.

Exporters are quoting the following prices:

                                   S/C OR F/C GOAT LEATHERS

Material	Size/sq. ft.	Substance	Selection	Price US$ per sq. ft. C&F
Goat upper leather	4/7	0.6/0.8 mm	ABC	2.30
Goat milled leather	4/7	0.6/0.8 mm	E/D	1.80/1.50
Goat suede leather	4/7	0.6/0.8 mm	All Suede	2.20
Goat lining leather	3/5 or 4/7	0.5/0.7 mm	TR-1/2/3	1.40
	6/9	0.6/0.8 mm	TR-1/2/3	1.55

                                                       

                                                   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	2.50
Sheep Suede/cabretta leather	6/9	0.8/1.00 mm	ABC	2.75
Sheep lining leather	3/5 or 4/7	0.5/0.7 mm	TR-1	1.75

A delegation of exporters is to go to New Delhi to express their grievances regarding “norms for identification of finished leather for export” to the Union government. .

( Indian Leather, September 2013)

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