CHENNAI LEATHER MARKET - JANUARY 2015

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

Chennai leather market is slow as elsewhere in the country. Tanned goat skins Run, V and IF were sold at around Rs.90, 80 and 70 whereas suede and lining were sold at around Rs.49 and 47 per sq. ft. respectively. Some North Indian customers showed interest for Rejection and Langa at around Rs.30 and 25 per sq. ft. Availability of tanned goat skins is improved. Exporters are able to cover their requirements easily without much difficulty.

In wet blue cow hides demand is very limited and obtainable prices are much lower. The combined price for selections V, VI and VII available now is at around Rs.70 per sq. ft. instead of Rs.80 ruling earlier. Local tanners are somewhat alarmed. But as some shoe manufacturers have big contracts for shoes made out of this item, it is believed that market may recover and workable prices will be available for tanners. There is also report of prices of kip and calf skins coming down in many centres in the country.

Even in goat and sheep leathers business is slow and prices lower. Many tanners have either curtailed or stopped their purchases of raw skins with the result that raw skins are easily available.

Due to Christmas and new year holidays there is no report of any big overseas business. However some contracts  concluded for export in finished goat leathers were at almost unchanged prices – Upper, Suede and Lining leathers fetched at around US$2.50, 2.40 and 1.60 per sq. ft. respectively.

Business with Japan continues to be meagre at the present asking prices. Exporters are not able to reduce the prices due to unfavourable exchange rates of Japanese Yen. The business concluded for Japan is mostly in lower selections. There seems to be no takers for higher grades.

Hong Kong and Singapore customers are also not active in the market. Only patchy business is taking place. However leather products exporters are able to get good orders from their regular customers. They are also finding new customers for their products leather goods and shoes in different countries. One feels that the future is bright for leather products.

Exporters are quoting at around the following prices:

F/C sheep suede leather

All Suede 6/8 sq. ft. JY240, 5 sq. ft. JY230 and 4/7 sq. ft. JY225 per sq. ft. C&F

F/C sheep lining leather

TR-Lining 4/7 sq. ft. JY145 and 5/8 sq. ft. JY155 per sq. ft. C&F

                                             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	2.40
Goat milled leather	4/7	0.6/0.8 mm	E/D	1.75
Goat suede leather	4/7 5/8	0.6/0.8 mm 0.6/0.8 mm	All Suede	2.30 2.40
Goat lining leather	4/7	0.5/0.7 mm	TR-1/TR-1/2/3	1.50
	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 Cabretta leather	4/7	0.6/0.8 mm	ABC	2.50
Sheep Cabretta leather	6/9	0.8/1.00 mm	ABC	2.60
Sheep lining leather	4/7 5/9	0.5/0.7 mm 0.6/0.8 mm	TR-1	1.65 1.75

(VMK in Indian Leather, January 2015)