CHENNAI
LEATHER MARKET
V.
M. Khaleelur Rahman
There seems to be no
big change in the Chennai leather market since last month or so. Things are
going on as usual. Exporters of leather and leather products continue to buy
their requirements at almost unchanged prices. They buy E.I. tanned goat skins 4/7
sq. ft. Run at around Rs.75 per sq. ft. and R/V/IF combined at Rs.67 per sq.
ft. whereas 5/8 sq. ft. Run/V/IF/LIF are sold at Rs.85/75/65/55 per sq. ft.
Some better marks have fetched higher prices.
As far as Suede
selection is concerned, there is no much demand and the price obtainable for
4/7 sq. ft. All Suede is at around Rs.50 per sq. ft. However Lining items are
in good demand. Tanners are able to sell 4/6 Lining A/B/C at around Rs.50/49/48
per sq. ft. There is also demand for 5/8 Linings in good selection at around
Rs.52 per sq. ft. The general feeling in the trade circle is that demand
continues for grain selections and more so for lining items. The slow and lacklustre
business trend in Suede is worrying tanners.
As regards F/C crust
goat skins, 4/6 sq. ft. ABC is sold at around Rs.80 per sq. ft. and other
selections are also saleable at different prices depending on the quality and
selection.
Local items Rejection
and Langda are sold at around Rs.31 and 20 per sq. ft. respectively.
Arrivals of tanned goat
and sheep skins continue to be limited as many tanners have either stopped or
reduced their production.
Raw goat skins of
normal average and selections are sold at around Rs.180 per piece whereas specific
better selections are sold at higher prices in different raw centres in the
country. Raw sheep skins are fetching
around Rs.280 and even more for better items.
Export Orders
There is good demand
for upper as well as lining leathers in the world market. Many exporters have
entered into contracts at almost unchanged prices as overseas customers are not
willing to pay increased prices. However exporters say that they will not be
able to accept the same prices in future as they are not workable at all. Their
present quotations are higher as the following table shows:
S/C
OR F/C GOAT LEATHERS
Material
|
Size/sq. ft.
|
Substance
|
Selection
|
Price US$ per sq. ft. C&F by sea
|
Goat upper leather
|
3/5 or 4/7
|
0.6/0.8 mm
|
ABC - 40/40/20%
|
2.80
|
Goat milled leather
|
4/7
|
0.6/0.8 mm
|
E/D -50/50%
|
1.80
|
Goat suede leather
|
4/7
|
0.6/0.8 mm
|
ABC Suede
|
2.50
|
Goat lining leather
|
4/7
|
0.5/0.7 mm
|
TR-1/2/3
|
1.60
|
6/9
|
0.6/0.8 mm
|
TR-1/2/3
|
1.70
|
F/C
SHEEP LEATHERS
Material
|
Size/sq.ft.
|
Substance
|
Selection
|
Price US$ per sq. ft. C&F by sea
|
Sheep Nappa leather
for garments
|
5/8
|
0.6/0.8 mm
|
ABC
|
3.20
|
Sheep Upper leather
for shoes
|
4/7
|
0.6/0.8 mm
|
ABC
|
2.90
|
Sheep lining leather
|
4/7
|
0.5/0.7 mm
|
TR-1
|
1.80
|
Sheep lining leather
|
5/8
|
0.6/0.8 mm
|
TR-1
|
1.90
|
It is also learnt that
there are enquiries for goat and sheep leathers from Japanese customers. Some
exporters have offered at around the following prices:
F/C sheep leather
5.5 sq. ft. All Suede
JY 260, LDT JY 210 and Rejection JY 160 per sq. ft. C&F by sea
F/C goat leather
5.5 sq. ft. All Suede
JY 235 per sq. ft. C&F by sea.
HONG KONG LEATHER FAIR
The APLF –Material,
Manufacturing and Technology (MM&T) show held in Hong Kong from 31st
March to 2nd April 2014 is the regular annual premier event for the
global leather industry. It attracts quite a large number of customers from
many countries. It is serving as the hub for leather related business and
considered a must-attend. Many Chennai based leather and leather products
exporters and industrialists attend this fair without fail every year. According
to available information, even this year a large number of Indian visitors were
in the fair but this cannot be said in the case of overseas customers. There
were more sellers than buyers. Even some big Hong Kong customers were
conspicuous by their absence perhaps because of the serious problems they are
facing there since a month or so in exim matters.
VMK in Indian Leather, April 2014)
