Chennai Leather Market - April 2018

CHENNAI LEATHER MARKET

V. M. Khaleelur Rahman

Activities in Chennai leather market have not undergone any big changes. The situation is almost the same and tanners are not happy at all as selling is not easy and making money is a Himalayan task.  Only higher grades find buyers and not lower selections.

Big shoe manufacturers are interested in higher grades of tanned goat skins. Some tanners have sold 5/6 sq. ft. Fifths and Inf. Fifths at around Rs.75 and 65 per sq. ft. respectively whereas R/V/IF/LIF combined in 4/6 sq. ft. has been sold at around Rs.58 per sq. ft.

As far as shoe suede is concerned, there is no much demand. It is reported that some tanners have sold this item at around Rs.43 per sq. ft. Local Rejection and Langda are not moving easily. Prices obtained for them are just Rs.13 and 10 per sq. ft. respectively. Raw skin prices are erratic everywhere in the country. There is no interest for lower selections at all. It is reported that in some centres unsalable rejection raw skins are simply buried.

Quotations of tanners 

E.I. Tanned Goat Skins

Grain selection: 5/7 sq. ft. Run Rs.90, Fifths Rs.75, Inf. Fifths Rs.65 and LIF Rs.55

Suede Selection: 4/6 sq. ft. Rs.42

Lining Selection: 5/7 sq. ft. Rs.40 and 4/6 sq. ft. Rs.36

Mesh selection: 5/8 sq. ft. Rs.31

All prices are per sq. ft.

Export Contracts

Some reputed exporters continue to sell their upper and lining leathers at around US $ 2.25 and 1.65 per sq. ft. respectively. But here again business is limited. One or two Japanese customers buy F/C sheep leather Rejection at around Japanese Yen 100 per sq. ft. This business is also not regular.

Quotations of Exporters

F/C sheep leather

4/6 sq. ft. All Suede JY 190, LIF Suede JY 160 and Rejection Suede JY 110

6/9 sq. ft. All Suede JY 200, LIF Suede JY 170 and Rejection Suede JY120 per sq. ft.

                            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	2.25
Goat milled leather	4/7	0.6/0.8 mm	TR-1	1.70
Goat suede leather	4/6	0.6/0.8 mm	All Suede	1.85
Goat lining leather	4/7	0.5/0.7 mm	TR-1	1.65
	6/9	0.6/0.8 mm	TR-1	1.75

                        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	2.00
Sheep Cabretta leather	6/9	0.8/1.00 mm	ABC	2.10
Sheep lining leather	4/7 5/8	0.5/0.7 mm 0.6/0.8 mm	TR-1 TR-1	1.65 1.75

Hong Kong Leather Fair 2018

According to reports available here from exporters who visited the Asia Pacific Leather Fair held in the middle of March 2018, it was disappointing. Overseas customers were “pick and choose” in their business as they are having huge stocks of unsold tanned and finished hides and skins. Only heavy weights and better grades were of interest to them. Buffalo calf and cow calf exporters were able to sell their quality leathers at around US$ 3.00 per sq. ft. Goat upper and lining exporters fetched some business at unchanged prices quoted above. However some reputed exporters might have sold even at higher prices but exact reports are not available. The undeniable fact is that the leather trade is passing through a difficult period and tanners are in a tight corner not knowing how to manage their business.

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