CHENNAI LEATHER MARKET - NOVEMBER 2013

CHENNAI LEATHER MARKET

V. M. Khaleelur Rahman

Activities in the Chennai leather market are almost unchanged and not very brisk. However as usual some big shoe manufacturers are covering their requirements of different items of tanned goat skins at around the prices given hereunder:

E.I. Tanned goat skins

3/5 sq. ft. Upper Rs.67, A lining Rs.49, A/B/C lining Rs.45, 4/7 sq. ft. lining Rs.46  and 5/8 sq. ft. lining Rs.52 per sq. ft.

3/8 sq. ft. Lot Rs.65, 4/7 ABC Suede Rs.65 and All Suede Rs.60.per sq. ft.

E.I. Tanned sheep skins

4/7 sq. ft. Run Rs.90 and Better Lining Rs.55 per sq. ft.

Wet blue goat skins

3/5 and 4/7 sq. ft. Lot Rs.55 per sq. ft.

During the recent Eid festival, the Qurbani raw hides and skins were sold at different prices depending on the quality and selection. There was good demand for these items from big tanners.

Goat, sheep, buffalo and cow finished leathers

Many tanners in places like Ambur, Vaniyambadi, Ranipet, Mel Visharam and Chennai are supplying upper and lining leathers for shoe manufacturers and nappa and suede leathers to different manufacturers of leather garments and goods across the country.

Export Trends

The Council for Leather Exports (CLE) figures show that there has been an increase of 13.60% in the overall exports of leather and leather products from US$ 2079.53 million in April-August 2012 to US$ 2362.36 in April-August 2013 the details of which are given hereunder:

(Value in million US Dollar)

CATEGORY	APRIL-AUGUST	APRIL-AUGUST	% VARIATION
	2012	2013
Finished Leather	474.16	521.02	9.88%
Leather Footwear	714.98	805.63	12.68%
Footwear Components	103.96	136.02	30.84%
Leather Garments	232.82	239.46	2.85%
Leather Goods	467.89	532.97	13.91%
Saddlery and Harness	43.38	57.47	32.48%
Non-Leather Footwear	42.34	69.79	64.82%
	2079.53	2362.36	13.60%

This positive growth is likely to continue according to indications from big and experienced exporters.

It is learnt that some small leather exporters have entered into contracts with customers in Sweden, Portugal and Spain as their Italian buyers are now not as active as before. Tanners say that China, Pakistan and Bangladesh are offering various items of leather at very competitive prices in the world market.

According to available reports here, the most important Lineapelle – Bologna leather fair held from 8 to 10, October 2013 attracted as usual a large number of exhibitors and visitors from across the world and Indian participants were also in good numbers and considerable volume of business was concluded.

Exporters are quoting 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 / 4/7	0.6/0.8 mm	ABC	2.50 / 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	2.40
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	1.60

                                            

                                                    F/C SHEEP LEATHERS

Material	Size/sq.ft.	Substance	Selection	Price US$ per sq. ft. C&F
Sheep upper leather	4/7	0.6/0.8 mm	ABC	2.50
Sheep Upper leather	6/9	0.8/1.00 mm	ABC	2.75
Sheep lining leather	4/7	0.5/0.7 mm	TR-1	1.75
Sheep lining leather	5/8	0.6/0.8 mm	TR-1	1.85

Norm for finished leather

There is continuous demand from leather exporters for liberalizing the norms for identification of finished leather. They say that the present procedure followed by Customs at the time of export is rigid, expensive and even time consuming.

(Indian Leather, November 2013)

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