CHENNAI LEATHER MARKET - OCTOBER 2014

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

Chennai leather market is normal. There is demand for various items of kip, calf, goat and sheep skins. Exporters of leather and leather products continue to buy tanned goat skins – 4/6 Suede at around Rs.48 and 4/6 Lining at around Rs.46 per sq. ft. and they pay about Rs. 2 higher for 5/7 in these selections. Run selections are sold at around Rs.80 per sq. ft. But there is no much demand for Rejection.  Some regular customers buy this item at prices ranging from Rs.27 to 30 per sq. ft. depending on the selection. Good Langda skins are sold at around Rs.20 per sq. ft. 

Some transactions have also taken place in Lots (consisting of all sizes and selections without Langda) at around Rs.50 per sq. ft. But such transactions are rare. 

At present tanners are quoting the following prices for their E.I. Tanned goat skins:

Run 5/7 sq. ft. Rs.85, 4/6 sq. ft. Rs.82 and R/V/IF Rs.70 per sq. ft.

All Suede: 5/8 sq. ft. Rs.52, 4/6 sq. ft. Rs.49, ABC Suede: 5/8 sq. ft. Rs.56 per sq. ft.

Lining: 5/8 sq. ft. TR1/2/3 Rs.50, TR1 Rs.52, 4/6 sq. ft. TR1/2/3 Rs.47, TR1 Rs.49 per sq. ft.

Wet blue cow hides are also in very good demand – ABC is sold at around Rs.120 and other grades like 5^th, 6^th and 7^th fetch at around Rs.80, 70 and 60 per sq. ft. As higher grades are not easily available in the market, many exporters are importing this item from abroad.

It is reported that raw goat and sheep skins are in good demand. In raw centres like Vijayanagaram they are sold at around Rs.160 and 270 per piece respectively. In centres like Miraj prices are higher depending on the quality and selection. 

Tanneries throughout Tamil Nadu are very cautious and restricting their soakings due to water scarcity and effluent problems. Tanning charges have gone up considerably. 

As far as export is concerned, big product and leather units are able to conclude contracts with their regular customers. However it is not the case with the small exporters. They find it difficult to get orders at workable levels. Some big Hong Kong importers who are facing exim problems are not in the market. 

It is learnt that there is good demand for quality upper and lining leathers in the world market. Exporters of leather and leather products who attended the recent Lineapelle leather fair at Milano say that there was a good attendance of customers in it and good volume of business was concluded. 

Exporters are pinning high hopes in the Mr. Narendra Modi headed new government with the belief that it will give the necessary support to industrialists to boost their productions and exports. The visit of our Prime Minister to the U.S.A. is also likely to bring good dividends in business collaborations. 

Quotations of exporters are at around the following prices:

                                           S/C AND F/C GOAT LEATHERS

Material	Size/sq. ft.	Substance (mm)	Selection	Price US$ per sq. ft. C&F
Goat upper leather	4/7	0.6/0.8	ABC - 40/40/20%	3.00
Goat milled leather	3/5 or 4/7	0.6/0.8	E/D -50/50%	2.10
Goat suede leather	4/7	0.6/0.8	ABC Sued	2.75
Goat lining leather	4/7	0.5/0.7	TR-1/TR-2/TR-3	1.50
	6/9	0.6/0.8 mm	TR-1/TR-2/TR-3	1.65

                                                      F/C SHEEP LEATHERS

Material	Size/sq.ft.	Substance (mm)	Selection	Price US$ per sq. ft. C&F
Sheep Nappa leather for garments	5/8	0.6/0.8	ABC	3.40
Sheep Upper leather for shoes	4/7	0.6/0.8	ABC	3.10
Sheep lining leather	4/7	0.5/0.7	TR-1	2.00
Sheep lining leather	5/8	0.6/0.8	TR-1	2.10

(VMK in Indian Leather, October 2014)