CHENNAI LEATHER MARKET - OCTOBER 2013

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

Chennai leather market for tanned, crust and wet blue goat and sheep skins continues to be slow as exporters of leather and leather products are not as active as before in purchases due to limited orders with them at present. However tanners are optimistic that it may change for the better in the days to come as European customers have returned from their holidays and are expected to resume their activities at least to some extent.

As many big exporters are not operating at present in the market, local tanners are not able to get better prices for their tanned and wet blue goat and sheep skins. They feel that the available prices are unworkable.

There seems to be no big change in prices. The prevailing prices are as follows:

E.I. Tanned goat skins:

4/9 sq. ft. Lot grain selection Rs.65/-, 4/7 sq. ft. All Suedes Rs.57/- and Heel Grip Rs. 47/- per sq. ft.

3/5 sq. ft. Better Lining Rs.48/-, 4/7 sq. ft. Lining Rs.46/-, 5/8 sq. ft. Lining Rs.51/- and Rejection Rs.31/- per sq. ft.

E.I. Tanned Red hair sheep skins

5/7 sq. ft. Run selection Rs.90/- per sq. ft.

Wet blue goat skins

4/7 sq. ft. Lot Rs.50/- per sq. ft.

Wet blue cow hides

Fifth selection Rs.80/- per sq. ft., IF Rs.72/- and LIF Rs.65/- per sq. ft.

Shortage of raw material

Availability of raw hides and skins is limited and prices are ruling high everywhere at home and abroad. Tanners are finding it extremely difficult to cover their requirements. Even overseas prices of these items are high and hence there is considerable reduction in the imports in our country. China’s hectic activities are posing a big challenge or threat to Indian exporters.  

Export Contracts

It is learnt that some business in different items of goat, sheep and cow leathers have taken place at different prices depending on the quality and selection.

Current prices of some exporters are at around the following prices:

                                                     

                                S/C OR F/C GOAT LEATHERS

Material	Size/sq. ft.	Substance	Selection	Price US$ per sq. ft. C&F
Goat upper leather	3/5 or 4/7	0.6/0.8 mm	ABC	2.40
Goat milled leather	4/7	0.6/0.8 mm	E/D	1.80/1.50
Goat suede leather	4/7	0.6/0.8 mm	All Suede	2.30
Goat lining leather	3/5 or 4/7	0.5/0.7 mm	TR-1/2/3	1.45
	6/9	0.6/0.8 mm	TR-1/2/3	1.55

                                             

                                                    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	2.50
Sheep Suede/cabretta leather	6/9	0.8/1.00 mm	ABC	2.75
Sheep lining leather	3/5 or 4/7	0.5/0.7 mm	TR-1	1.75

The All India Skin and Hide Tanners and Merchants Association (AISHTMA) is trying to find ways and means to increase exports. In its recently held Annual General Meeting, its President Mr. M. Rafeeque Ahmed said that countries in South America, Africa and the East should be the targets for leather exporters in the absence of regular export orders from the traditional importers such as Italy, Germany, Spain etc. He cautioned the exporters that the favourable exchange rates are only short term benefits and an indication of the challenges ahead for exporters.

The AISHTMA appreciates the Government policy in not allowing raw hides and skins and semi-finished leather for export.

( Indian Leather, October 2013 )

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