CHENNAI
LEATHER MARKET
V.M.
Khaleelur Rahman
Chennai leather market remained almost
unchanged in the first month of the new year 2015. Exporters of leather
products continue to buy E.I. Tanned and wet blue goat and sheep skins as
usual. But leather exporters are slow in their purchases as they are not able
to get workable prices from their customers. However some higher grades which
are not easily available in the market are paid higher prices. The prevailing
prices in the local market are somewhat as under:
E.I.
Tanned Goat Skins
4/7 sq. ft. Run Rs.100, Fifth Rs.80, Inf.
Fifth Rs.70 and LIF Rs.60 per sq. ft.
4/7 sq. ft. ABC Suede Rs.55, All Suede Rs.52
and Heel Grip Rs.46 per sq. ft.
4/7 sq. ft. A Lining Rs.50, B Lining Rs.48 and
C Lining Rs.46 per sq. ft.
5/9 sq. ft. Lining Rs.47 and 4/7 sq. ft. Lot
Rs.65 per sq. ft.
Local Rejection Rs.32 and Langda Rs.25 per sq.
ft.
Wet
Blue Goat Skins
4/7 sq. ft. Lot Rs.70 per sq. ft.
E.I.
Tanned Red Hair Sheep skins
5/7 sq. ft. Lot Rs.85 per sq. ft.
Kip
and Calf skins
It seems that there is little activity in kip
and calf skins. Prices of these items have come down considerably in raw skin
centres throughout the country and even abroad. Tanners are very cautious in
their purchases.
Overseas
Contracts
It is learnt that some big exporters have sold
goat upper leathers at around US$2.50 and Linings at around US$1.60 whereas
Suede leathers have been sold at around US$2.25 per sq. ft. There are also
reports of some big exporters having sold the same descriptions at about 15
Cents higher.
Japanese customers continue to be slow in
their purchases as exporters have increased prices due to unfavourable exchange
rates in Yen. Quotations of exporters are as follows:
F/C
sheep Suede leather
All Suede 4/7 sq. ft. JY 240, 5.5 sq. ft. and
up JY 250 and 6/8 sq. ft. JY 260 per sq. ft.
F/C
sheep Lining leather
TR-Lining 4/7 sq. ft. JY 155 and 5/8 sq. ft.
JY 165 per sq. ft. All prices C&F
Exporters are quoting at around the following
prices:
S/C OR F/C GOAT
LEATHERS
Material
|
Size/sq.
ft.
|
Substance
|
Selection
|
Price
US$ per sq. ft. C&F
|
Goat
upper leather
|
3/5
/ 4/7
|
0.6/0.8
mm
|
ABC
|
2.60
|
Goat
milled leather
|
4/7
|
0.6/0.8
mm
|
D/E
|
1.85
|
Goat
suede leather
|
4/7
|
0.6/0.8
mm
|
All
Suede
|
2.40
|
Goat
lining leather
|
3/5
or 4/7
|
0.5/0.7
mm
|
TR-1/2/3
|
1.50
|
6/9
|
0.6/0.8
mm
|
TR-1/2/3
|
1.60
|
F/C SHEEP LEATHERS
Material
|
Size/sq.ft.
|
Substance
|
Selection
|
Price
US$ per sq. ft. C&F
|
Sheep
upper leather
|
4/7
|
0.6/0.8
mm
|
ABC
|
2.60
|
Sheep
Upper leather
|
6/9
|
0.8/1.00
mm
|
ABC
|
2.80
|
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
|
1.85
|
Manufacturers of leather products such as
leather goods, shoes and garments are able to get good export orders and
factories are functioning well in different places such as Ambur, Vaniyambadi,
Ranipet and Chennai.
Export
performance of leather and leather products
It is learnt from the Council for Leather
Exports that there is increase in the export of leather, leather products and
non-leather footwear as details given below:
As per officially notified DGCI& S monthly export data, the
export of Leather and Leather products for the period April-October 2014
touched US$ 3931.44 million as against the performance of US$ 3331.78 million
in the corresponding period of last year, recording a positive growth of
18.00%. In rupee terms, the export touched Rs. 237320.32 million in
April-October 2014 as against the previous year’s performance of Rs. 198067.68 million, recording a positive growth of 19.82%.
A statement showing the product wise export performance during
April-October 2014 vis-à-vis April=October 2013 is given below:
Value in Million
US$
|
||||
Category
|
April-Oct 2013
|
April-Oct 2014
|
% Variation
|
% Share
|
Finished Leather
|
741.63
|
827.57
|
11.59
|
21.05
|
Leather Footwear
|
1100.42
|
1356.56
|
23.28
|
34.51
|
Footwear Components
|
185.81
|
230.22
|
23.90
|
5.86
|
Leather Garments
|
339.69
|
360.96
|
6.26
|
9.18
|
Leather Goods
|
773.36
|
855.71.
|
10.65
|
21.77
|
Saddlery & Harness
|
83.80
|
104.31
|
24.48
|
2.65
|
Non-Leather Footwear
|
107.08
|
196.12
|
83.15
|
4.99
|
Total
|
3331.78
|
3931.44
|
18.00
|
100.00
|
Value in Million Rs.
|
|||
Category
|
April-Oct 2013
|
April-Oct 2014
|
% Variation
|
Finished Leather
|
44088.13
|
49955.74
|
13.31
|
Leather Footwear
|
65417.57
|
81888.22
|
25.18
|
Footwear Components
|
11045.76
|
13896.87
|
25.81
|
Leather Garments
|
20194.18
|
21789.11
|
7.90
|
Leather Goods
|
45974.52
|
51654.80
|
12.36
|
Saddlery and Harness
|
4981.69
|
6296.79
|
26.40
|
Non-Leather Footwear
|
6365.83
|
11838.79
|
85.97
|
Total
|
198067.68
|
237320.32
|
19.82
|
Source DGCI&S
|
|||
In both Rupee and Dollar terms, export of leather and leather products
have shown positive growth in all the product segments during the first seven
months of the current financial year 2014-15.
Tanners and exporters feel that 2015 will be a better year for
the progress and development of the leather industry with the support of the
present NDA government headed by the dynamic Prime minister Mr. Narendra Modi.
(VMK in Indian Leather, February 2015)
(VMK in Indian Leather, February 2015)
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