Leather market is slow and prices down - April 2015

CHENNAI LEATHER MARKET

V. M. Khaleelur Rahman

Chennai leather market is slow and prices of tanned and wet blue goat and sheep skins are lower. Even the regular buyers who are mostly manufacturers and exporters of leather products have slowed down their purchases. Prices of raw hides and skins are also considerably lower in raw centres throughout the country. 

Mr. M. Rafeeque Ahmed, President, All India Skin and Hide Tanners and Merchants Association has said that the Maharashtra government’s decision to ban beef will affect the leather sector in Tamil Nadu which sources 40 per cent of hides produced in Maharashtra.

Foreign enquiries are limited for all kinds of leather. There is a general feeling in the trade circle that the present market is a “difficult one”.

As far as tanned goat skins are concerned, there is no report of any big translations. Some tanners have sold their 4/6 sq. ft. Suede at around Rs.46 and 5/8 sq. ft. Suede at around Rs.48 per sq. ft. whereas A Lining in the same sizes have been sold at around Rs.47 and 49 per sq. ft. respectively. There is more demand for Lining and less demand for Suede. Rejection and Langda are sold at around Rs.30 and 25 per sq. ft. Many big tanners are having stocks of tanned goat and sheep skins for disposal in the market. But they say that “right prices” are not coming. Almost same is the case in wet blue goat and sheep skins.

As regards overseas business, some patchy business is taking place in goat and sheep upper, suede and lining leathers at reduced prices depending on the quality and selection. But most of the importers of Europe, U.K. and Japan do not seem to be operating here. 

Some exporters have sold their finished leathers at around the following prices:

3/5 and 4/7 sq. ft.: Upper, ABC US$2.30, Suede US$2.00 and Lining TR1/2/3 US$1.45 per sq. ft. C&F. 

Latest Quotations of exporters 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 / 4/7	0.6/0.8 mm	ABC	2.40
Goat milled leather	4/7	0.6/0.8 mm	D/E	1.75
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	1.45
	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 upper leather	4/7	0.6/0.8 mm	ABC	2.40
Sheep Upper leather	6/9	0.8/1.00 mm	ABC	2.60
Sheep lining leather	4/7	0.5/0.7 mm	TR-1	1.70
Sheep lining leather	5/8	0.6/0.8 mm	TR-1	1.80

Demand for changes in exim policy. 

The general feeling in the trade circle is that the leather industry is passing through a difficult period due to the unfortunate effluent problems despite best efforts and high competition in the world leather market. While small tanners say that they are not able to carry on their export business as the existing norms for identification of finished leathers are very strict and controversial, some others are of the opinion that the high 15% duty levied at present on the export of E.I. tanned hides and skins (which are nothing but a sort of finished leather) should be abolished for the sake of their survival and earning more foreign exchange for the country. At the same time yet another section feel that the government cannot go back from its present progressive policy which encourages growth and export of leather products such as shoes, garments and leather goods and that all it can do is to make necessary changes in the exim policy in consultation with the Council for Leather Export and many other trade associations representing different sections of the trade and industry.