India Leatherette Market Sheds 9.39% in June With Further July Declines Anticipated on Persisting Weak Demand

India's leatherette prices declined 9.39% in June 2026, marking one of the sharpest monthly corrections in the domestic synthetic leather market in recent memory, as a 3.9% fall in polyurethane feedstock costs combined with broad downstream demand weakness across footwear, automotive, and furniture sectors to produce a sustained and significant price retreat through the month.

The feedstock picture was mixed but net bearish. Polyurethane costs — which directly influence the production economics of PU-grade leatherette, the dominant product type at Indian manufacturers including Mayur Uniquoters, Responsive Industries, and Marvel Vinyls — declined 3.9% during June, lowering variable manufacturing costs and enabling producers to reduce selling prices to stimulate sales activity. PVC prices, which underpin the cost structure for the PVC-grade rexine segment serving price-sensitive applications in footwear lining and economy furniture, rose 2.3% during the month, creating a divergent cost dynamic between the two primary leatherette grades. However, the PVC cost increase was insufficient to prevent the overall market from declining, as PU-grade leatherette dominates the higher-value automotive and furniture segments where the bulk of June procurement weakness was concentrated.

On the demand side for leatherette, conditions were broadly weak across all three primary end-use channels. Synthetic leather finds extensive applications in footwear, furnishing, and automotive sectors, with the footwear industry driven by increasing popularity of athleisure trends and faux leather footwear, the furnishing sector experiencing substantial growth due to synthetic leather's resistance to climatic conditions, and the automotive sector utilising synthetic leather upholstery for enhanced comfort and durability. In June 2026, all three channels maintained subdued procurement activity for leatherette, with footwear manufacturers managing existing inventory ahead of the monsoon season, automotive OEMs pacing purchases around model transition schedules, and furniture sector buyers deferring restocking amid broader consumer spending caution.  

With 60% of Indian consumers actively shifting towards sustainable products, manufacturers are prioritizing PU leather over traditional PVC-based synthetic leather, which contains harmful chemicals, accelerating the structural shift toward PU-grade leatherette. However, this sustainability-driven demand migration provided no near-term procurement uplift in June, as buyers across both PVC and PU leatherette segments maintained conservative purchasing postures.

Looking ahead, July 2026 is anticipated to see a further decline in Indian leatherette prices, extending the correction that began in June. The seasonal demand weakness that characterized June — with the monsoon period traditionally suppressing footwear retail activity and limiting new automotive launches — is expected to persist through the majority of July, removing the demand-side catalyst necessary for price recovery. Polyurethane feedstock costs, which had already declined 3.9% in June, are anticipated to face continued downward pressure as global propylene and isocyanate markets adjust to lower crude oil reference values following the partial Strait of Hormuz reopening. This further feedstock cost reduction is expected to transmit into additional leatherette price concessions as Indian producers compete to maintain volume throughput at their coating and laminating facilities. The combination of persisting seasonal demand softness and continued feedstock cost deflation points toward a further 3–5% monthly price decline at the Indian leatherette market level, with any meaningful recovery contingent on the resumption of active autumn footwear procurement and a stabilization of the polyurethane cost environment.