CHENNAI LEATHER MARKET - JUNE 2016

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

There seems to be no big change in the leather market.  As usual there are some leather and leather products exporters in the market covering their requirements. Local tanners are able to sell their E.I. Tanned Goat Skins at around the following prices:

Run/V/IF 

4/6 - Rs. 62 per sq. ft. and 5/8 ­– Rs.75 per sq. ft. 

All Suede

5/8 – Rs. 52 and Heel Grip Rs. 36 per sq. ft. 

Mesh

Grain side – Rs. 30 and Flesh side – Rs. 32

Rejection and Langda

Rs. 25 and 18 per sq. ft. 

Goat Raw Skins

Miraj big skins with high quality and selection Rs. 280/300 and normal skins with high quality and selection Rs. 180/200

Nagpur Rs. 125, Mumbai Rs. 150 Vijayawada Rs.130 per piece. 

Modachur big skins with high quality and selection Rs. 300 per piece. 

E.I. Tanned and Wet Blue sheep skins

Activities are little in these items. Local tanners are having considerable stock for sale. However there is some demand for high quality skins. Prices depend on quality, selection and interest of customers. Generally speaking sheep market is very dull. 

Other items like buffalo and cow hides are also slow in movements. 

Export Contracts

As usual European and Hong Kong customers show interest for S/C and F/C goat upper and lining leathers at almost unchanged prices i.e. around US $ 2.25 and 1.50 per sq. ft respectively.

Japanese customers continue to be slow in purchases. Some small business have taken place in F/C sheep leather All Suede and Rejection at around JY 225 and 140 per sq. ft. respectively whereas S/C sheep leather All Suede has been sold at around JY 265. 

Exporters of leather as well as leather products find it difficult to obtain orders at workable prices. Since a year or so there has been decline in exports of these items almost every month. Exports have suffered not only in India but also in countries like China, Pakistan and Bangladesh. However for the sake of continuity of business footwear manufacturers have no option but to sell at the best available prices. 

Exporters are offering as follows for export: 

All Suede 5/7 sq. ft. JY 240 and 4/7 sq. ft. JY 230 per sq. ft. C&F by sea

Rejection Suede 4/7 sq. ft. JY 140 per sq. ft. C&F by sea

                                      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 or 4/7	0.6/0.8 mm	ABC/DE	2.30/1.75
Goat milled leather	4/7	0.6/0.8 mm	TR-1	1.65
Goat suede leather	4/7 5/8	0.6/0.8 mm 0.6/0.8 mm	All Suede	2.20 2.30
Goat lining leather	4/7	0.5/0.7 mm	TR-1/2/3	1.55
	6/9	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 Cabretta leather	4/7	0.6/0.8 mm	ABC	2.35
Sheep Cabretta leather	6/9	0.8/1.00 mm	ABC	2.50
Sheep lining leather	4/7 5/9	0.5/0.7 mm 0.6/0.8 mm	TR-1 TR-1	1.60 1.70

Small exporters of leather feel that there is an urgent need for the government to announce some incentives for exports to enable them to make their prices competitive and attract business in the present dull and highly competitive international market. 

(Writer’s e-mail id: vmk1234@yahoo.com)