Friday, May 1, 2015

CHENNAI LEATHER MARKET - MAY 2015


CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

Activities in the Chennai leather market continue to be slow and prices are downward for all items of leather. Many tanners are having tanned and wet blue goat and sheep skins for disposal. Only some selected items such as tanned goat A/B/C linings are on the move.at around Rs.47/46/45 per sq. ft. respectively. Tanners are finding it difficult to sell higher selections. Only a small volume of business seems to have taken place in Run and Fifth selections at around Rs.85 and 75 per sq. ft. Regular buyers have slowed down their purchases due to lack of orders and uncertain market conditions. Nobody is able to say the reasons for this state of affairs and none is in a position to predict the future trends. The leather market is as unpredictable as the Share market. 

As far as raw hides and skins are concerned, tanners are choosy in operations even though prices have come down considerably. This seems to be the case in almost all raw skin centres in the country. There is also considerable fall in imports of wet blue hides and skins.
There seems to be considerable fall even in exports of leather and leather products. Leather exporters say that “fresh business is difficult” even at reduced prices. According to reliable sources, the international leather market is in a tight corner. 

Payments are delayed beyond expectations both at home and abroad in some cases. It is learnt that many overseas importers have requested their customers in India to give them further time for honouring their export bills. 

Apart from unfavourable overseas market, effluent problem, strict norms for identification of finished leather and financial squeeze due to restricted activity are the hurdles exporters are facing at present in the market. 

Quotations of tanners are as follows:

E.I. Tanned Goat Skins

4/7 sq. ft. Run Rs.95, Fifth Rs.75, Inf. Fifth Rs.65 and LIF Rs.55 per sq. ft.
4/7 sq. ft. ABC Suede Rs.50 and All Suede Rs.45 per sq. ft.
4/7 sq. ft. A Lining Rs.48, B Lining Rs.46 and C Lining Rs.44 per sq. ft.
5/9 sq. ft. A Lining Rs.49, B Lining Rs.47 and C Lining Rs.45 per sq. ft.
Local Rejection Rs.30 and Langda Rs.25 per sq. ft. 

Offers of exporters are 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
2.40
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
2.30
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
2.50
Sheep Upper leather
6/9
0.8/1.00 mm
ABC
2.70
Sheep lining leather
4/7
0.5/0.7 mm
TR-1
1.65
Sheep lining leather
5/8
0.6/0.8 mm
TR-1
 1.75


Japanese customers are also almost keeping quiet. The interest shown by one or two of them is for Rejection. Higher selections are not moving.  Exporters are quoting at around the following prices: 

F/C sheep suede leather

All Suede 6/8 sq. ft. JY240, 5 sq. ft. and up JY230 and 4/7 sq. ft. JY220 per sq. ft. C&F 

F/C sheep lining leather 

TR-Lining 4/7 sq. ft. JY145 and 5/8 sq. ft. JY155 per sq. ft. C&F
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