LEATHER MARKET IS FIRM WITH MORE DEMAND AND LESS SUPPLY
V.M. Khaleelur Rahman
The leather market is firm with more demand and less supply in Periamet (Chennai) and other centres like Ambur, Vaniyambadi, Ranipet, Melvisharam, Pernambut etc. All items - goat, sheep , kip and calf leathers - are on the move. In the Periamet market shoe manufacturers are showing good interest for tanned goat skins Run selection at around Rs.60/- whereas Fifth and Inf.Fifth selections are in demand at around Rs. 50/- and 45/- per sq.ft. respectively. Tanned goat All Suedes are sold at around Rs. 42 and goat Linings A/B/C have continuous demand at around Rs. 36/35/34 per sq.ft. The general feeling in the market is that leather and shoe manufacturers are not able to get the quantity they require in these items. They have to book in advance with tanners for their requirements. The present time is peculiar in the sense that it is out and out a seller’s market.
In Vaniyambadi which is a good market for wet blue, crust and finished sheep leathers like nappa we can see increased number of customers purchasing these items at varying prices depending on the selection and quality. Imported skins are also available here. There are many tanners who import wet blue goat and sheep skins from countries like Switzerland, Nigeria, Saudia Arabia, Egypt, etc. Even import prices have gone up considerably.
In Erode also which is a popular centre for wet blue cow hides, shoe manufacturers continue to buy their requirements with much difficulty as they have to bargain a lot for prices even with regular suppliers who on the other hand regret their inability to supply at old prices due to abnormal increase in prices of raw hides at different centres in the country.
When I asked a leading exporter the reason for this state of affairs in the leather market, he said, “I don’t think there is any abnormal demand for leather and leather products in the international market at higher prices. The main reason for it is the work pressure in factories and fear complex among particularly new exporters that they may not be able to get raw hides and skins they require to fulfill their obligations”. Of course it remains to be seen what happens in the future.
EXPORT OFFERS FOR FINISHED LEATHER
Chennai exporters are quoting hihger prices for various items of finished leather. F/C goat upper leathers for shoes, 4/7 sq. ft. ABC, are quoted at around US$2.20 and D/E/F at around US$1.80/170/160 per sq.ft. In the S/C and F/C goat lining leathers which have good demand abroad the present prices, quoted by tanners for 3/5 or 4/7 sq.ft. TR-1/2/3, are US$1.30/1.20/1.10 per sq.ft. However it is learnt that overseas customers are mostly reluctant to pay these prices but exporters here say that they have no other option as prices of raw skins, chemicals, wattle extract, labour charges etc. have gone up and apart from this availability of raw skins is also limited at all raw skin centres in the country.
JAPAN TRAGEDY
The recent earthquake tragedy occurred in Japan has paralysed the normal life beyond our imagination in some areas in Japan. The valiant Japanese who are reputed the world over for their straightforward and honest dealings are endeavouring their best to cope up with the situation and regain what has been lost. They will achieve it. As far as the leather industry is concerned, it is not known if it has been affected and if so to what extent. However leading exporters say that there will not be any big change in their dealings with our country and in their export and import policy.
HONG KONG AND BALOGNA LEATHER FAIRS
As usual tanners and shoe manufacturers are participating in the Hong Kong based Asia Pacific Leather Fair (from 30th March to 1st April 2011) and the Bologna based Lineapelle leather fair (from 6th to 8th April 2011) This time due to the market position explained above it has become necessary for them more than ever before to meet their regular customers during these two fairs and prepare their future export and import plans. Leather and leather products exporters who have entered into big export contracts are in a dilemma as covering their requirements of raw hides and skins has become a Himalayan task at present.
(Indian Leather, April 2011)
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V.M. Khaleelur Rahman
The leather market is firm with more demand and less supply in Periamet (Chennai) and other centres like Ambur, Vaniyambadi, Ranipet, Melvisharam, Pernambut etc. All items - goat, sheep , kip and calf leathers - are on the move. In the Periamet market shoe manufacturers are showing good interest for tanned goat skins Run selection at around Rs.60/- whereas Fifth and Inf.Fifth selections are in demand at around Rs. 50/- and 45/- per sq.ft. respectively. Tanned goat All Suedes are sold at around Rs. 42 and goat Linings A/B/C have continuous demand at around Rs. 36/35/34 per sq.ft. The general feeling in the market is that leather and shoe manufacturers are not able to get the quantity they require in these items. They have to book in advance with tanners for their requirements. The present time is peculiar in the sense that it is out and out a seller’s market.
In Vaniyambadi which is a good market for wet blue, crust and finished sheep leathers like nappa we can see increased number of customers purchasing these items at varying prices depending on the selection and quality. Imported skins are also available here. There are many tanners who import wet blue goat and sheep skins from countries like Switzerland, Nigeria, Saudia Arabia, Egypt, etc. Even import prices have gone up considerably.
In Erode also which is a popular centre for wet blue cow hides, shoe manufacturers continue to buy their requirements with much difficulty as they have to bargain a lot for prices even with regular suppliers who on the other hand regret their inability to supply at old prices due to abnormal increase in prices of raw hides at different centres in the country.
When I asked a leading exporter the reason for this state of affairs in the leather market, he said, “I don’t think there is any abnormal demand for leather and leather products in the international market at higher prices. The main reason for it is the work pressure in factories and fear complex among particularly new exporters that they may not be able to get raw hides and skins they require to fulfill their obligations”. Of course it remains to be seen what happens in the future.
EXPORT OFFERS FOR FINISHED LEATHER
Chennai exporters are quoting hihger prices for various items of finished leather. F/C goat upper leathers for shoes, 4/7 sq. ft. ABC, are quoted at around US$2.20 and D/E/F at around US$1.80/170/160 per sq.ft. In the S/C and F/C goat lining leathers which have good demand abroad the present prices, quoted by tanners for 3/5 or 4/7 sq.ft. TR-1/2/3, are US$1.30/1.20/1.10 per sq.ft. However it is learnt that overseas customers are mostly reluctant to pay these prices but exporters here say that they have no other option as prices of raw skins, chemicals, wattle extract, labour charges etc. have gone up and apart from this availability of raw skins is also limited at all raw skin centres in the country.
JAPAN TRAGEDY
The recent earthquake tragedy occurred in Japan has paralysed the normal life beyond our imagination in some areas in Japan. The valiant Japanese who are reputed the world over for their straightforward and honest dealings are endeavouring their best to cope up with the situation and regain what has been lost. They will achieve it. As far as the leather industry is concerned, it is not known if it has been affected and if so to what extent. However leading exporters say that there will not be any big change in their dealings with our country and in their export and import policy.
HONG KONG AND BALOGNA LEATHER FAIRS
As usual tanners and shoe manufacturers are participating in the Hong Kong based Asia Pacific Leather Fair (from 30th March to 1st April 2011) and the Bologna based Lineapelle leather fair (from 6th to 8th April 2011) This time due to the market position explained above it has become necessary for them more than ever before to meet their regular customers during these two fairs and prepare their future export and import plans. Leather and leather products exporters who have entered into big export contracts are in a dilemma as covering their requirements of raw hides and skins has become a Himalayan task at present.
(Indian Leather, April 2011)
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