Financial Daily from THE HINDU group of publications
Tuesday, Apr 02, 2002
Agri-Biz & Commodities
Sluggish trend in leather continues
K. Asadullah Basha
THE GDS International Footwear Fair held in Germany during March 14- 17 has failed ushed in a new hope in the country's leather sector amidst the global recession. According to the President of the Indian Shoe Federation Mr N. Shafeeq Ahmed, the response at this year's fair was not encouraging. The number of participants and visitors were less. Contrary to the expectations, only limited orders were booked.
Endorsing this view, the Southern Regional Chairman of the Council for Leather Exports Dr Zackriah Sait said the buyers were very price conscious. Nobody was prepared to pay anything more than the last season prices and, in fact, wanted further cut in the prices. This is because the trend in the European market is very slow and insecure.
He felt that export of both leather and leather products to Europe would drop sharply. "If we are able to meet the price expectations, maybe, we can maintain our exports. Particularly, the trend seems to be weak for both leather goods and garments," he added.
In the domestic market, the trend continues to be sluggish. A little spurt in the prices of raw sheep skins was reported due to shortage in the arrivals of seasonal lots and demand for it. There was no change in the prices of nappa leather. Instead, buyers bargained seeking a price Rs 0.25/0.50 per sq dcm lower than the existing price levels.
Demand continued for goat, buffalo and cow calf leather at the existing price levels only. While the prices of cow hides leather have come down by Rs 3 to 5 a sq.ft.
Meanwhile, some spurt in the import of hides and skins was reported this month. Brazillian Wet Blue of ox heifers with a substance of 2.4 mm and an average size of 24 sq ft selection A grade was offered at $1.20 c&f Chennai and less 10 cents for B and C each.
USA steers with an average size of 40/45 sq ft selection TR was quoted at $1.70/1.80, but buyers have bargained at $1.50. However, no business was confirmed.
Ukraine Cow wet blue with a size of 34/36 sq ft and a substance of 2.5 mm, selection TR was quoted at $1.45-1.55 c&F. While an agent offered cow `CD' grade with an average range of 18 sq ft per side with a thickness of 2-4 mm in butt area and 1.4-1.6 mm in the belly and shank area 60,000 sq ft at $1 per sq.ft.
Sudan cow unsplited with a substance of 2 mm and up selection ABC was quoted at $0.90/1.00 f.o.b. Saudi cow with an average size of 35 sq ft and a substance of 2.5 mm and up, selection TR was quoted at $1.45/1.60.
Saudi wet blue goat skin with an average range of 30/35 sq ft per dozen skins, selection TR was quoted at $35 f.o.b. Australian raw goat skins ¾ range selection 1 and 2 (90 per cent - 10 per cent respectively meant for glazed kid was quoted at $ 4.25 per skin. Egyptian wet blue sheep skin with a range of 100 sq.ft per dozen skins, selection TR/ABCD was quoted at $88-90.
Mexican sole leather WYNY Mexico brand sole leather with a substance range of 3 to 3.35/4 to 4.5/5.5 mm was quoted at $6.80-5.80 per kg respectively.
There was also an offer of Italian finished leather. Lamb nappa average lot was offered at $1.20 and caberetta at $1.75 per sq.ft goat asport finish (ruboff) was quoted at $2.50, goat anaconda and dinos print leather was offered at $2.50 to 2.80 and articles like goat brushed off, glazed and milled glazed were quoted between $1.65 and $1.80
Send this article to Friends by E-Mail
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line