Chennai Leather Market - May 2019

CHENNAI  LEATHER MARKET

V M Khaleelur Rahman

It is learnt that in the Chennai leather market, the following sales have taken place in E.I. tanned goat skins:

Run selection 5/7 sq. ft. Rs.96, 4/6 sq. ft. Rs.90, All Suedes 5/7 sq. ft. Rs.38, 4/6 sq. ft. Rs.35, Lining 5/7 sq. ft. Rs.39 and 4/6 sq. ft. Rs.34, all per sq. ft.

Big exporters of leather and leather shoes continue to buy tanned goat skins. The above are the prevailing prices.

It seems that there was somewhat increased demand for local items like Rejection and Landga at around Rs.13 and 10 per sq. ft. respectively and transactions have taken place at these prices. A reputed tanner has also sold his goat lot Stouts at Rs.18 and Rejection Stouts at Rs.16 per sq. ft. respectively.

Prices of raw hides and skins are erratic in every Centre in the Country. It is difficult to quote the prices. Generally speaking raw cow hides are sold at around Rs.550/600 and raw goat skins at around Rs.90/100.

In some selected Centres like Miraj where quality and selection of raw goat skins are better, prices are ruling higher up to Rs.150 per piece.

Vaniyambadi tanners are buying raw sheep skins at around Rs.100 per piece from some Karnataka and Andhra Centres with strict selection. But business is not regular.

Payments are delayed in the market.

Export Contracts

Some patchy business is taking place in goat upper and lining leathers as usual at around US $ 2.20 and 1.70 per sq. ft. respectively. Some reputed exporters may have fetched higher prices depending on quality and selection.

Japanese customers are almost keeping quiet and there seems to be no business at all.

As far as shoe business is concerned, many factories are doing well in places like Ambur and they are able to market their products to different sources in the world market. But this has not been an easy task in the recent times.

Shoe manufacturers endeavour their best to get orders and sometimes even at unworkable prices in order to keep their factories running without any halt. China and Pakistan are main competitors.

Export Increase

It is reported that there has been an increase of 8% in the export of leather and leather products during the year 2018-19 and expected that it will grow further in the coming years.

According to Mr. P.R. Aqeel Ahmed, Chairman, Council for Leather Exports, during the year 2018-19, exports grew to Rs.36,562.34 crore from Rs.33,894.71 crore in the corresponding year – earlier period. This growth is in Rupee terms and in Dollar terms it was similar to last year’s level. The CLE is aiming to achieve a growth of 9% to 10% in the current year and for which it has planned a “comprehensive and extensive marketing campaign involving more than 20 events”.

Quotations of Exporters

F/C sheep leather

4/6 sq. ft. All Suede JY 180, LIF Suede JY 145 and Rejection Suede JY 90

5/7 sq. ft. All Suede JY 190, LIF Suede JY 155 and Rejection Suede JY 100

                              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	2.25
Goat milled leather	4/7	0.6/0.8 mm	TR-1	1.70
Goat suede leather	4/7	0.6/0.8 mm	All Suede	1.90
Goat lining leather	4/7	0.5/0.7 mm	TR-1/2/3	1.75/1.65/1.55
Goat lining leather	5/8	0.6/0.8 mm	TR-1/2/3	1.85/1.75/1.65

                                    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	2.10
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

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