CHENNAI LEATHER MARKET -APRIL 2014

CHENNAI LEATHER MARKET

V. M. Khaleelur Rahman

There seems to be no big change in the Chennai leather market since last month or so. Things are going on as usual. Exporters of leather and leather products continue to buy their requirements at almost unchanged prices. They buy E.I. tanned goat skins 4/7 sq. ft. Run at around Rs.75 per sq. ft. and R/V/IF combined at Rs.67 per sq. ft. whereas 5/8 sq. ft. Run/V/IF/LIF are sold at Rs.85/75/65/55 per sq. ft. Some better marks have fetched higher prices.

As far as Suede selection is concerned, there is no much demand and the price obtainable for 4/7 sq. ft. All Suede is at around Rs.50 per sq. ft. However Lining items are in good demand. Tanners are able to sell 4/6 Lining A/B/C at around Rs.50/49/48 per sq. ft. There is also demand for 5/8 Linings in good selection at around Rs.52 per sq. ft. The general feeling in the trade circle is that demand continues for grain selections and more so for lining items. The slow and lacklustre business trend in Suede is worrying tanners. 

As regards F/C crust goat skins, 4/6 sq. ft. ABC is sold at around Rs.80 per sq. ft. and other selections are also saleable at different prices depending on the quality and selection. 

Local items Rejection and Langda are sold at around Rs.31 and 20 per sq. ft. respectively.

Arrivals of tanned goat and sheep skins continue to be limited as many tanners have either stopped or reduced their production. 

Raw goat skins of normal average and selections are sold at around Rs.180 per piece whereas specific better selections are sold at higher prices in different raw centres in the country.  Raw sheep skins are fetching around Rs.280 and even more for better items. 

Export Orders

There is good demand for upper as well as lining leathers in the world market. Many exporters have entered into contracts at almost unchanged prices as overseas customers are not willing to pay increased prices. However exporters say that they will not be able to accept the same prices in future as they are not workable at all. Their present quotations are higher as the following table shows: 

S/C OR F/C GOAT LEATHERS

Material	Size/sq. ft.	Substance	Selection	Price US$ per sq. ft. C&F by sea
Goat upper leather	3/5 or 4/7	0.6/0.8 mm	ABC - 40/40/20%	2.80
Goat milled leather	4/7	0.6/0.8 mm	E/D -50/50%	1.80
Goat suede leather	4/7	0.6/0.8 mm	ABC Suede	2.50
Goat lining leather	4/7	0.5/0.7 mm	TR-1/2/3	1.60
	6/9	0.6/0.8 mm	TR-1/2/3	1.70

F/C SHEEP LEATHERS

Material	Size/sq.ft.	Substance	Selection	Price US$ per sq. ft. C&F by sea
Sheep Nappa leather for garments	5/8	0.6/0.8 mm	ABC	3.20
Sheep Upper leather for shoes	4/7	0.6/0.8 mm	ABC	2.90
Sheep lining leather	4/7	0.5/0.7 mm	TR-1	1.80
Sheep lining leather	5/8	0.6/0.8 mm	TR-1	1.90

It is also learnt that there are enquiries for goat and sheep leathers from Japanese customers. Some exporters have offered at around the following prices:

F/C sheep leather

5.5 sq. ft. All Suede JY 260, LDT JY 210 and Rejection JY 160 per sq. ft. C&F by sea 

F/C goat leather

5.5 sq. ft. All Suede JY 235 per sq. ft. C&F by sea.

HONG KONG LEATHER FAIR

The APLF –Material, Manufacturing and Technology (MM&T) show held in Hong Kong from 31^st March to 2^nd April 2014 is the regular annual premier event for the global leather industry. It attracts quite a large number of customers from many countries. It is serving as the hub for leather related business and considered a must-attend. Many Chennai based leather and leather products exporters and industrialists attend this fair without fail every year. According to available information, even this year a large number of Indian visitors were in the fair but this cannot be said in the case of overseas customers. There were more sellers than buyers. Even some big Hong Kong customers were conspicuous by their absence perhaps because of the serious problems they are facing there since a month or so in exim matters. 

 

VMK in Indian Leather, April 2014)