Friday, November 1, 2019

Chennai Leather Market - November 2019


CHENNAI LEATHER MARKET
V M Khaleelur Rahman

In the absence of purchases by leading shoe manufacturers, Chennai leather market is dull and drab. Only limited volume of business is taking place putting tanners with huge stocks in a dilemma. The demand which exists at present for tanned goat skins 5/8 sq. ft. Run is at around Rs.95 and 4/6 sq. ft. R/V/IF combined is at around Rs. 50 per sq. ft.

As regards once well sought after tanned goat Suede, 3/4 and 4/6 sq. ft. are fetching at around only Rs.23 and 31 per sq. ft. respectively.

Local items goat Rejection and Langda are sold at around Rs.12 and 8 per sq. ft. Some tanners have sold better Rejection 4/6 sq. ft. at Rs.13 and 5/7 sq. ft. at Rs.14 per sq. ft. But quantities sold are small. Some business are also reported in Langda at around Rs.120 per kg.

Quotations of Tanners

E. I. Tanned Goat Skins
Grain Selection:
4/6 sq. ft. R/V/IF combined Rs.55
5/7 sq. ft. Run Rs.95, Fifths Rs.70, Inf. Fifths Rs.60 and LIF Rs.50
Suede Selection:
All Suede 4/6 sq. ft. Rs.33
Heel Grip:
4/7 sq. ft. Rs.16
Rejection Rs.13 and Langda Rs.9
Prices are per sq. ft.

In many raw skin centres in the country, business is possible only in higher selections at different prices depending on quality and grade. In Andhra Pradesh raw goat skins are sold at prices ranging from Rs.30 to 40 and raw sheep skins Potla from Rs.100 to 110 and Mendi from Rs.40 to 50 per piece.

Export Contracts

As far as export business is concerned, leather exporters are desperately trying their best to get orders. Even big exporters do not have enough contracts. However some contracts concluded in goat upper and lining leathers in small quantities are at around US$2.15 and 1.75 per sq. ft. for account of European and other customers. Japanese are almost keeping quiet. There is no report of any business with them.

In Places like Ambur big shoe factories continue to function well with their best efforts, many a time even reducing their reasonable asking prices for the sake of continuity of business. Overseas customers also cooperate in placing regular orders with them, impressed by their high standard quality of shoes. It is also a fact that many small units are suffering without orders.

Quotations of Exporters

F/C sheep leather
4/6 sq. ft. All Suede JY 175, LIF Suede JY 145 and Rejection Suede JY 95

5/7 sq. ft. All Suede JY 185, LIF Suede JY 155, and Rejection Suede JY 100

S/C or F/C Goat Leather
Goat upper leather 4/6 sq. ft. ABC US$2.30
Goat lining leather 4/6 sq. ft. TR-1/2/3
Combined price US$1.70 and 5/8 sq. ft. TR-1/2/3 US$1.80

F/C Sheep Leather
Sheep Cabrera leather
4/6 sq. ft. 0.6/0.8 mm, ABC US$2.15
6/9 sq. ft. 0.8/1.0 mm, ABC US$2.30

Sheep lining leather
4/6 sq. ft. 0.5/0.7 mm, TR-1 US$1.80
5/8 sq. ft. 0.6/0.8 mm, TR-1 US$1.90

Financial squeeze is very much felt in the market and payments are delayed to suppliers of raw hides and skins, chemicals, shoe materials, packing materials etc.

Leather Fair

Many from Chennai attended the Lineapelle leather fair held at Bologna, Italy from 15 to 17 October 2019. According to available reports, although the fair was well organised as usual, absence of some potential customers upset a section of visitors. But it is said big exporters were benefited from the fair meeting their regular customers, knowing future trends and also concluding some contracts particularly in footwear.

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

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