Saturday, September 2, 2017

Chennai Leather Market - September 2017

Chennai Leather Market

V. M. Khaleelur Rahman

Activities in the Chennai leather market continue to be slow and tanners are in a tight corner not knowing how to continue their business. Big exporters of leather and leather products are interested only in higher grades of tanned goat skins such as 5/7 sq. ft. Run, Fifth and Inferior Fifth at around Rs.90, 70 and 60 per sq. ft. respectively and not in lower selections. Tanners consider these prices highly unworkable.

There is some demand for tanned goat lining leathers at around the following prices:
Better lining 5/7 sq. ft. Rs.50 and 4/6 sq. ft. Rs.42 per sq. ft. respectively.
But quantities sold are limited. Big orders are not coming at all.

As far as Rejection and Langda are concerned, there are no takers. The prices sometimes available for these items, Rs.14 and Rs.8 per sq. ft. respectively, are ridiculously low. Tanners say in selling these items they are not getting even tanning charges.

Sheep tanners are also finding it difficult to sell their goods.

Almost all tanners are having huge stocks and trying their best to clear them as soon as possible as they are hard pressed for money.

The Indian economy has lost steam in the April-June quarter slowing to a three- year low and the slowdown was most steep in manufacturing, construction and mining sectors according to reports recently published in the media. While the demonetisation has not brought the desired results, the GST has slowed down business. It is expected that proper remedial measures will be taken by the government to set things right. Hon’ble Finance Minister Mr. Arun Jaitley has assured that he would take steps to boost growth.

Mr. M. Rafeeque Ahmed, President of the All India Skin and Hide Tanners and Merchants Association, Chennai has appealed to the government for 5% GST rate across the range of leather products as has been done for textiles as it is also labour-intensive.

Quotations are as follows:

E.I. Tanned Goat Skins

Grain selection : 5/7 sq. ft. Run/V Rs.95, V Rs.75, IF Rs.65 and LIF Rs.55
Suede selection: 5/7 sq. ft. Rs.45 and 4/6 sq. ft. Rs.42
Lining selection: 5/7 sq. ft. Rs.42 and 4/6 sq. ft. Rs.37
Mesh selection: 5/8 sq. ft. Rs.32, all prices per sq.ft. 

Prices of raw goat and sheep skins are erratic not only in India but everywhere in the world. Perhaps so is the case of cow and buffalo hides.

It is learnt that there is a severe cash crunch in the market. Payments are delayed beyond imagination.

Overseas Orders

As far as export business is concerned, it is very slow as last month as customers are on holidays and market continues to be dull due to various reasons. Japanese buyers are also almost quiet. However shoe manufacturers are somehow managing to keep their factories running despite difficulties. It remains to be seen how things take shape in the coming days.

Quotations of Exporters are as follows:

4/6 sq. ft. All Suede JY 190, LIF Suede JY 160, Rejection Suede JY 110
6/9 sq. ft. All Suede JY 210, LIF Suede JY 175, Rejection Suede JY 120

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/DE
2.20/1.70
Goat milled leather
4/7
0.6/0.8 mm
TR-1
1.75
Goat suede leather
4/7
5/8
0.6/0.8 mm
0.6/0.8 mm
All Suede
1.95
2.05
Goat lining leather
4/7
0.5/0.7 mm
TR-1
1.60
6/9
0.6/0.8 mm
TR-1
1.70

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
1.95
Sheep Cabretta leather
6/9
0.8/1.00 mm
ABC
2.05
Sheep lining leather
4/7
5/8
0.5/0.7 mm
0.6/0.8 mm
TR-1
TR-1
1.60
1.70


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

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