Chennai Leather Market - November 2015

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

The Chennai leather market continues to be almost the same without any change for the better. Tanners who are regular suppliers to some important exporters of leather and leather products say that the present prices are not workable at all for them.

E.I. Tanned Goat Skins:

It is learnt that some business has taken place at around the following prices:

5/8 sq. ft. Run Rs.90, Fifth Rs.80, Inf. Fifth Rs.70 and LIF Rs.60 per sq. ft.

4/6 sq. ft. Run & Fifth combined Rs.65 and Inf. Fifth & LIF combined Rs.57 per sq. ft.

4/6 sq. ft. Suede Rs.52 and 5/7 sq. ft. Suede Rs.55 per sq. ft.

4/6 sq. ft. Lining Rs.45 and 5/8 sq. ft. Lining Rs.47 per sq. ft.

Local Rejection Rs.27 and Langda Rs.23 per sq. ft. and some better varieties have fetched higher prices.

Raw Goat Skins

Raw goat skins as all other items are slow in movements. Prevailing prices are at around the following prices per piece:

Miraj - between Rs.200 – 250

Mumbai - between Rs.150 – 175

Vijayawada – between Rs.120 – 140

Kadapa – between Rs.160 – 170

However Qurbani raw skins accumulated by some dealers were sold at much higher prices depending on quality and selection.

Export Contracts

It is learnt that some big exporters have sold upper and lining leathers at almost unchanged prices. However small exporters find it difficult to get export orders as overseas demand is limited.

Exporters are quoting 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	4/6 5/8	0.6/0.8 mm 0.7/0.9 mm	ABC	2.40 2.50
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 4/6	0.5/0.7 mm	TR-1/2/3	1.55
	5/7	0.6/0.8 mm	TR-1/2/3	1.65

                                                     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	2.70
Sheep Upper leather	6/9	0.8/1.00 mm	ABC	2.90
Sheep lining leather	4/7	0.5/0.7 mm	TR-1/2/3	1.70
Sheep lining leather	5/8 5.5 and up	0.6/0.8 mm 0.8/0.9 mm	TR-1/2/3 -do-	1.80 1.90

As far as business with Japan is concerned, exporters say that they are able to do some patchy business at almost unchanged prices and that demand is not much. Some business has been done in F/C sheep leather 6/9 sq. ft. ABC Suede and REJ Suede at around JY 230 and 140 per sq. ft. respectively.

Quotations of exporters are as follows

F/C sheep leather

4/6 sq. ft. All Suede JY 230 and 6/9 sq. ft. All Suede JY 240 per sq. ft.

4/6 sq. ft. LDT Suede JY 175 and 6/9 sq. ft. LDT Suede JY 190 per sq. ft.

 4/6 sq. ft. REJ Suede JY 140 and 6/9 sq. ft. REJ Suede JY 145 per sq. ft.

S/C goat upper leather

5/7 sq. ft. ABC JY 220 and 7/10 sq. ft. ABC JY 250

General Feeling

Exporters of leather as well as leather products feel that the present market condition is very unfavourable, perhaps never witnessed before in the history of the leather industry and that there is immediate need for some extra incentives from the government to face this unprecedented situation.

(VMK in Indian Leather, November 2015) 

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