Chennai Leather Market - July 2019

CHENNAI  LEATHER MARKET

V M Khaleelur Rahman

Chennai leather market is weak. There are more sellers having large quantities of hides and skins but buyers are very limited. Even some big exporters of leather and leather products who extended some support to local tanners operating in tanned goat skins are conspicuous by their absence. This has disappointed many tanners. Enquiries reveal that lack of sufficient export orders is the cause for this malady. It is believed that they will start purchases when they have more export orders. For the time being enough goods are available with them for production. At present tanners are quoting as follows:

EI tanned goat skins:

6/9 sq. ft. Run Rs.95, Fifth Rs.75, Inf. Fifth Rs.65 and LIF Rs.55

5/8 sq. ft. V/IF/LIF Rs.70/60/50

All Suede 4/6 sq. ft. 32

Rejection Rs.12 and Langda Rs.9

Prices are per sq. ft.

There are reports of a very few business in the above items at around the quoted prices. Goods are available In plenty in the market. I again repeat there are very few takers.

As regards raw skins the following are the ruling prices:

Raw goat skins

Kadappa Rs.50, Vijayanagaram Rs.40 and Hyderabad Rs.35 per piece. Prices differ for selected skins.

Raw Red hair sheep skins:

Kadappa Rs.150 and Vijayanagaram Rs.120 per piece.

Export Orders

Shoe industry seems to be doing well. There are some big factories in Ambur which are functioning well keeping their thousands of employees  intact.  In order to keep their units running they struggle a lot and sell their products at highly competitive prices in international markets. It is really a great thing. But for them the leather industry will stand nowhere.  A section of the leather industry believes that the new NDA government which has come to power for the second term will do its best to give importance to the export oriented leather industry and encourage it to earn more foreign exchange and create jobs.

Leather exporters receive small export orders in upper and lining leathers at around US$ 2.25 and 1.75 per sq. ft. respectively. There is no demand for Suede leathers and there is no report of any business in this item.

Japan customers are not in the market. No exporter seems to have concluded any business. Long experienced business men who are in the industry say that they have never seen such a bad market condition before.

Quotations of Exporters

Exporters are quoting almost the same prices for their goat and sheep leathers as given in the tables below. If big contracts are available, they can even give some discounts.

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	1.75
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)