Friday, January 1, 2016

Chennai Leather Market - January 2016

                               CHENNAI LEATHER MARKET

                                      V M Khaleelur Rahman

Chennai leather market continues to remain almost unchanged in its activities. Local tanners are cautious in their operations. Most of them have reduced their productions as demand is limited and prices available are unworkable.

It is learnt that some big exporters of leather and leather products are in the market occasionally buying their requirements of E.I. tanned goat skins at around the following prices:

5/8 sq. ft. Run Rs.90, Fifth Rs.80, Inferior Fifth Rs.70 and Loose Inf. Fifth Rs.60

There is less demand for 4/6 sq. ft. and available prices are at around Rs.65 for Run and Fifth combined whereas A and B Linings in 5/8 sq. ft. are salable at around Rs.50 and 45.

 4/6 sq. ft. All Suede in on the move at around Rs. 53.

Local Rejections and Langdas are sold at around Rs.25 and 20 respectively per sq. ft.

Tanners say that they are not interested in doing big business as although the prices of raw skins are lower,  tanning charges are higher – Rs. 15 for tanned leather and Rs.20 for Crust leather per sq. ft.

RAW SKINS

Market is slow in almost all raw centres in the country. In Miraj where quality is good, goat raw skins are sold at around Rs.180/200 per piece and in other centres like Kalyan in Maharashtra at around Rs.130/140 per piece. Surprisingly in many raw centres the prices of raw goat and sheep skins are almost the same. There is much fall in the prices of sheep skins. But in Centres like Salem in Tamil Nadu the prices are much higher for both raw goat and sheep skins as quality is good.  Some reputed tanners buy only big size raw goat and sheep skins with strict inspection for which they pay high prices which depend on quality and selection.

OVERSEAS CONTRACTS

Due to Christmas and New Year holidays abroad, there was no report of any big business. During the first two weeks of December some business were reported at around almost unchanged prices. While S/C and F/C goat upper leathers were sold at around US $ 2.50, A, B and C Linings were sold at around US $ 160,150 and 140 per sq. ft. respectively.

Quotations of exporters are as follows:

                                                         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
2.60
Goat milled leather
4/7
0.6/0.8 mm
D/E
G/H
1.70
1.60
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
TR-2
TR-3
1.70
1.60
1.50
6/9
0.6/0.8 mm
TR-1/2/3
1.70
                                              
                                                     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
2.60
Sheep Upper leather
6/9
0.8/1.00 mm
ABC
2.70
Sheep lining leather
4/7
0.5/0.7 mm
TR-1/2/3
1.60
Sheep lining leather
5/8
0.6/0.8 mm
TR-1/2/3
1.70

As regards business with Japan, there was no report of any fresh business. Perhaps customers wanted to do business in the New Year after getting their outstanding contracts executed. However exporters offers are as follows:

S/C sheep upper leather

6/9 sq. ft. ABC JY 250 per sq. ft. C&F

5/7 sq. ft. ABC JY 240 per sq. ft. C&F

4/7 sq. ft. ABC JY 230 per sq. ft. C&F

F/C sheep suede leather

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

F/C sheep lining leather

TR-Lining 4/7 sq. ft. JY140 and 5/8 sq. ft. JY150 per sq. ft. C&F

 (Writer’s e-mail id: vmk1234@yahoo.com)

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