CHENNAI LEATHER MARKET
V. M. Khaleelur Rahman
There is no much activity in the Chennai leather market. Although good demand exists for tanned goat skins, prices obtainable by local suppliers particularly for suede selection are lower by about Rs.3 per sq. ft. There are reports of business in this item at around Rs. 60 per sq. ft. This is due to the fact that many exporters of leather are slow in their purchases as overseas customers do not seem to show interest at the present prices. Another reason for it is the “problem” faced by exporters of leather at the customs while shipping their goods. According to information available here, leathers in light colours are not easily passed for export by the customs authorities who are strict in applying the existing norms for identification of finished leathers. Many small exporters are not willing to take any risk in doing finished leather for export. It seems that some have appealed to the Council for Leather Exports to do the needful in this regard and facilitate export of leathers without problems. It remains to be seen what happens in the days to come.
Leather products manufacturers continue to buy tanned goat and sheep skins but at somewhat lower prices. They are interested in grain Run selection at prices ranging from Rs. 75 to 80 per sq. ft. depending on the quality and selection. Different selections of tanned and crust sheep skins are sold at slightly lower prices.
Buffalo and cow calf leathers lower grades are salable at around Rs. 50 per sq. ft.
Other tanned goat items like Lining ABC 4/6 size is sold at around Rs.44 and 5/8 size at around Rs. 48 whereas Rejection is sold at around Rs. 32 and Langda at around Rs. 22 per sq. ft. Some Langda items are also sold at around Rs. 250 per kg. There are also demand for local items such as Paper, Kid etc. at different prices based on quality and selection.
As far as export is concerned, only some big exporters have done some business in goat and sheep leathers at somewhat lower prices.
Tanners are quoting at around the following prices for their goat and sheep leathers:
S/C OR F/C GOAT LEATHERS
Material Size/sq. ft. Substance Selection Price US$ per sq. ft. C&F
Goat upper leather 4/7 0.6/0.8 mm ABC 2.50
Goat milled leather 4/7 0.6/0.8 mm E/D 2.00/1.75
Goat suede leather 4/7 0.6/0.8 mm All Suede 2.40
Goat lining leather
3/5 or 4/7 0.5/0.7 mm TR-1/2/3 1.50
6/9 0.6/0.8 mm TR-1/2/3 1.65
F/C SHEEP LEATHERS
Material Size/sq.ft. Substance Selection Price US$ per sq. ft. C&F
Sheep Suede/Cabretta leather 4/7 0.6/0.8 mm ABC 2.70
Sheep Suede/cabretta leather 6/9 0.8/1.00 mm ABC 2.90
Sheep lining leather 3/5 or 4/7 0.5/0.7 mm TR-1 1.80
Big shoe factories are doing well in places like Ambur. However many small factories doing job works are facing many problems like lack of orders, delayed payments etc. and some have already been closed. The biggest problem every factory faces here is “reduced and interrupted supply of electricity”. The government has to find a solution for this immediately without any further loss of time.
(VMK in Indian Leather, May 2013)
V. M. Khaleelur Rahman
There is no much activity in the Chennai leather market. Although good demand exists for tanned goat skins, prices obtainable by local suppliers particularly for suede selection are lower by about Rs.3 per sq. ft. There are reports of business in this item at around Rs. 60 per sq. ft. This is due to the fact that many exporters of leather are slow in their purchases as overseas customers do not seem to show interest at the present prices. Another reason for it is the “problem” faced by exporters of leather at the customs while shipping their goods. According to information available here, leathers in light colours are not easily passed for export by the customs authorities who are strict in applying the existing norms for identification of finished leathers. Many small exporters are not willing to take any risk in doing finished leather for export. It seems that some have appealed to the Council for Leather Exports to do the needful in this regard and facilitate export of leathers without problems. It remains to be seen what happens in the days to come.
Leather products manufacturers continue to buy tanned goat and sheep skins but at somewhat lower prices. They are interested in grain Run selection at prices ranging from Rs. 75 to 80 per sq. ft. depending on the quality and selection. Different selections of tanned and crust sheep skins are sold at slightly lower prices.
Buffalo and cow calf leathers lower grades are salable at around Rs. 50 per sq. ft.
Other tanned goat items like Lining ABC 4/6 size is sold at around Rs.44 and 5/8 size at around Rs. 48 whereas Rejection is sold at around Rs. 32 and Langda at around Rs. 22 per sq. ft. Some Langda items are also sold at around Rs. 250 per kg. There are also demand for local items such as Paper, Kid etc. at different prices based on quality and selection.
As far as export is concerned, only some big exporters have done some business in goat and sheep leathers at somewhat lower prices.
Tanners are quoting at around the following prices for their goat and sheep leathers:
S/C OR F/C GOAT LEATHERS
Material Size/sq. ft. Substance Selection Price US$ per sq. ft. C&F
Goat upper leather 4/7 0.6/0.8 mm ABC 2.50
Goat milled leather 4/7 0.6/0.8 mm E/D 2.00/1.75
Goat suede leather 4/7 0.6/0.8 mm All Suede 2.40
Goat lining leather
3/5 or 4/7 0.5/0.7 mm TR-1/2/3 1.50
6/9 0.6/0.8 mm TR-1/2/3 1.65
F/C SHEEP LEATHERS
Material Size/sq.ft. Substance Selection Price US$ per sq. ft. C&F
Sheep Suede/Cabretta leather 4/7 0.6/0.8 mm ABC 2.70
Sheep Suede/cabretta leather 6/9 0.8/1.00 mm ABC 2.90
Sheep lining leather 3/5 or 4/7 0.5/0.7 mm TR-1 1.80
Big shoe factories are doing well in places like Ambur. However many small factories doing job works are facing many problems like lack of orders, delayed payments etc. and some have already been closed. The biggest problem every factory faces here is “reduced and interrupted supply of electricity”. The government has to find a solution for this immediately without any further loss of time.
(VMK in Indian Leather, May 2013)
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