Chennai Leather Market - February 2019

CHENNAI  LEATHER MARKET

V M Khaleelur Rahman

Activities are normal in the Chennai leather market. Leading exporters of leather and leather products continue to buy some quantities in tanned goat skins as usual in 5/8 sq. ft. Run at prices ranging from Rs.100 to 105 and V/IF/LIF combined at around Rs.65 and 4/6 sq. ft. in the same description at around Rs.55 per sq. ft.

Tanned goat 4/6 sq. ft. Suede fetches Rs.38 and 4/6 Lining Rs.34 and 5/7 sq. ft. Lining Rs.37 per sq. ft. Local items Rejection and Langda were sold at around Rs.13 and 9 per sq. ft. respectively. There seems to be slightly higher demand in these items from North Indian buyers. But these are not regularly moving.

There is very little demand for sheep skins. In places like Vaniyambadi some business might have taken place but no report is available.

It seems the whole leather market is managed by a few bold tanners and exporters facing all difficulties with the hope that things will change for better.

In the raw skin centres throughout the country prices of goat skins are very erratic ranging from Rs.30 to 80 depending on size, quality and selection. There is no demand at all for lower selections. Good quality raw sheep skins Potla and Mendi are sold at around Rs.90 and 40 per piece in centres like Dharwad and Hubli.

Export Business

Patchy business has taken place in goat upper and lining leathers at around the usual prices of US $2.30 and 1.75 per sq. ft. respectively. There seems to be no big contract. The reports of big exporters are not available.

Quotations of Tanners

E.I. Tanned Goat Skins

Grain Selection:

4/6 sq. ft. Run Rs.95, V/IF/LIF Rs.60

Suede Selection:

4/6 sq. ft. Rs.40

Lining Selection:

4/6 sq. ft. Rs.35 and 5/8 sq. ft. Rs.39

Quotations of Exporters

F/C sheep leather

4/6 sq. ft. All Suede JY 180, LIF Suede JY 145 and Rejection Suede JY 95

5/7 sq. ft. All Suede JY 190, LIF Suede JY 155 and Rejection Suede JY 105

                              S/C OR F/C GOAT LEATHER

Material	Size/sq. ft.	Substance	Selection	Price US$ per sq. ft. C&F
Goat upper leather	4/7	0.6/0.8 mm	ABC	2.30
Goat milled leather	4/7	0.6/0.8 mm	TR-1	1.75
Goat suede leather	4/7	0.6/0.8 mm	All Suede	1.95
Goat lining leather	4/7	0.5/0.7 mm	TR-1/2/3	1.70/1.60/1.50
Goat lining leather	5/8	0.6/0.8 mm	TR-1/2/3	1.80/1.70/1.60

                                    F/C SHEEP LEATHER

Material	Size/sq. ft.	Substance	Selection	Price US$ per sq. ft. C&F
Sheep cabretta leather	4/7	0.6/0.8	ABC	2.05
Sheep cabretta leather	6/9	0.8/1.0	ABC	2.25
Sheep lining leather	4/7 5/8	0.5/0.7 0.6/0.8	TR-1 TR-1	1.75 1.85

INCEASE IN EXPORTS

Though passing through a difficult period, the leather industry has showed an increase of 3.78% in its exports of leather and leather products from Rs.33,900 crore in 2017 to Rs.35,181 crore in 2018 calendar year .

In a press statement, Mr. M. Rafeeque Ahmed, President, All India Skin and Hide Tanners and Merchants Association (AISHTMA) has said that due to the ongoing trade war between the U.S and China, overseas buyers have started looking for alternative sources and India will benefit from it. He expected a $ 1.5 billion volume of business for India, particularly at the present time when Indian shoe makers are concentrating in casual shoes for which there is already an increased demand. India has to catch this trend although it requires huge investment.

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