Chennai Leather Market - August 2019

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

Normalcy prevails in the Chennai leather market. Big exporters of footwear are yet to start purchases of tanned goat skins. It seems at present they are buying wet blue goat skins from Calcutta. However some leather exporters have bought tanned goat skins at around the following prices - Run selection Rs.95, V/IF combined Rs.55 and Lining Rs.40 per sq. ft. Agra and Calcutta customers have operated in Rejection and Langda at around Rs.13 and 9 per sq. ft. respectively. But the volume of business concluded is very limited and there is no regularity of business.

As far as raw goat and sheep skins are concerned, prices are as follows:

Kadappa

Goat Rs.40 and Sheep –Potla Rs.130 and Mendi Rs.65

Vijayanagaram

Goat Rs.30 and Sheep – Potla Rs.100 and Mendi Rs.40

Export Orders

Some patchy business seems to continue in goat upper and lining leathers at around US$2.25 and 1.75 per sq. ft. respectively. But regular contracts in big quantities are not visible. European and Far East customers are very slow in business. Some exporters who supplied goods to customers in Hong Kong are not getting payments. It is reported that many crores of Rupees are due from customers in Hong Kong and China to Indian exporters particularly in Tamil Nadu. The new trend of non L/C business such as 90 days D/A preferred by customers and accepted by Indian exporters some years ago in order to have big contracts is considered to be the main cause for the problems Indian exporters are facing now. Japanese customers are almost keeping quiet and despite best efforts tanners say business is not taking place.

Although the 15% export duty has been abolished for E.I. tanned goat skins by the government, much business is neither in sight not expected as international leather market is passing through a never witnessed before difficult period. However it is believed that exporters will be able to fetch good orders when demand arises by offering their goods at competitive prices in the world market.  

At the same time leather products manufacturers are not happy with this duty abolition as they fear that raw skins will not be available for them in the domestic market and they will have to suffer. It remains to be seen what happens. It is well known that they have always been demanding a ban on export of all sorts of leather.

F/C sheep leather

4/6 sq. ft. All Suede JY 175, LIF Suede JY 140 and Rejection Suede JY 90

5/7 sq. ft. All Suede JY 190, LIF Suede JY 150 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 5/8	0.6/0.8 mm 0.7/0.9	ABC	2.25 2.40
Goat milled leather	4/7	0.6/0.8 mm	TR-1	1.60
Goat suede leather	4/7	0.6/0.8 mm	All Suede	1.75
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)