CHENNAI LEATHER MARKET - JUNE 2015

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

There seems to be no change in the Chennai leather market. Limited activities are taking place in certain items of tanned and wet blue goat and sheep skins which exporters require. While exporters of leathers are very slow in purchases, exporters of leather products such as shoes and garments are choosy in their operations. Tanners are not happy as they are not able to get workable prices from their domestic as well as overseas customers. 

Tanned goat skins Run selections are moving at around Rs.90 and A/B/C linings combined at around Rs.45 per sq. ft. There is more demand for lining leathers rather than any other item. Local Rejection and Langda are salable at around Rs.30 and 25 per sq. ft. respectively. But demand is not much. 

Even in raw hides and skins, prices are down particularly because many tanners and exporters are either slow or have stopped their purchases. Effluent problems in different states also prevent tanners from bulk operations.

Overseas activities are also restricted in leather items. Only some big exporters are able to get some export contracts. One feels that there is considerable downfall in exports. As reported earlier there are also reports of delay in payments of export bills. 

Quotations of tanners are as follows:

E.I. TANNED GOAT SKINS

4/7  Run Rs.90, Fifth Rs.75, Inf. Fifth Rs.70 and LIF Rs.55 per sq. ft.

4/7 All Suede Rs.50 and ABC Suede Rs.55 per sq. ft.

3/5 ABC Lining Rs.46, 4/7 ABC Lining Rs.47 and 5/8 ABC Lining Rs.49 per sq. ft.

Local Rejection Rs.31 and Langda Rs.26 per sq. ft. 

EXPORT QUOTATIONS 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	4/7	0.6/0.8 mm	ABC	2.50
Goat milled leather	4/7	0.6/0.8 mm	D/E – G/H	1.75 – 1.65
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	2.55
Sheep Upper leather	6/9	0.8/1.00 mm	ABC	2.75
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

The above quotations are just an indication. Some reputed and big exporters are quoting much higher prices depending on the quality and selection. 

Japanese customers are not in the market. Only some meagre business is taking place in lower selections. Quotations of exporters are as under: 

F/C sheep suede leather

All Suede 6/8 sq. ft. JY230, 5 sq. ft. and up JY220 and 4/7 sq. ft. JY210 per sq. ft. C&F 

F/C sheep lining leather 

TR-Lining 4/7 sq. ft. JY140 and 5/8 sq. ft. JY150 per sq. ft. C&F 

AMBUR OPEN EXHIBITION-6

Ambur Open Exhibition-6 is scheduled for 6^th and 7^th June 2015. It is one of the most important and well attended exhibitions of finished leather, accessories, components, technology and machinery. The industry is keenly awaiting it and its outcome with interest particularly at the present time when it is in a tight corner. The different trade associations are expected to discuss the present problems the industry is facing and find solutions for them through the state and union governments.