Friday, December 9, 2011

CHENNAI LEATHER MARKET - ARRIVALS LIMITED

CHENNAI LEATHER MARKET


V.M. Khaleelur Rahman

Arrivals of tanned goat skins continue to be limited in the Chennai leather market and exporters are finding it difficult to cover their requirements. As prices of raw skins are ruling high everywhere in the country, many small tanners have either curtailed or stopped their productions. There is also a financial crunch in the market and payments are delayed very much.

It is learnt that tanned goat skins Run selection is sold at around Rs.60, All Suede at around Rs.55 and Suede selection lot (up to Heel grip) at around Rs. 48 per sq. ft. Many exporters of leather and leather products are very much interested in these higher selections but prices vary depending on quality, selection and the need of the buyer. There is also a continued demand for Lining selections A/B/C at around Rs. 41/40/39 per sq. ft. Local Rejections are sold at around Rs. 32 per sq. ft.

Wet blue cow hides Run is sold at around Rs.85 and middle selections combined at around Rs.55 per sq. ft. and some reputed tanners fetch even higher prices in centres like Erode. Vaniyambadi tanners are supplying items like Sheep Nappa, Suede and Linings to exporters of leather products at different almost unchanged prices.

While some big tanners and exporters are having good orders for various items of finished leathers, small exporters say that “at present new business is difficult as prices are not coming”. Overseas customers do not seem to be as enthusiastic as before for business now. They want reduction in prices for continuity of business.

Recent offers of 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 2.50

Goat milled leather 4/7 0.6/0.8 mm E 2.00

Goat suede leather 3/5 or 4/7 0.6/0.8 mm ABC/D/E 2.30/1.80/1.60

Goat lining leather

4/7 0.5/0.7 mm TR-1/2/3 1.60/1.50/1.40

6/9 0.6/0.8 mm TR-1/2/3 1.65/1.55/1.45

Goat lining leather lot 3/9 0.5 up mm Stock lot 1.10

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/D/E 2.50/2.00/1.50

Sheep Suede/cabretta leather 6/9 0.8/1.00 mm ABC/D/E 2.75/2.25/1.75

Sheep lining leather 3/5 or 4/7 0.5/0.7 mm TR-1/2/3 combined 1.60

There is no report of any big business in the market and it seems that only some patchy business have taken place. There are also delays in shipment due to limited availability of raw skins. Imports of raw skins from some Arab countries like Egypt are also meagre due to internal problems in those countries. Even imports from countries like Switzerland have been affected due to unworkable prices quoted by exporters in Dollar and Euro and their higher exchange rates in Rupees. There are indications from some sources that the stiff competition existing in the market will ease as foreign customers are slow in their activities.

An exporter told me that Chinese and Pakistani exporters are posing a great threat to Indian exporters by offering their products at comparatively lower prices as higher exchange rates and incentives are available to them.
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