Tender Report April 2022

After many months of enthusiastic rough purchasing and escalating prices, the anticipated slowdown was triggered by the volatile geopolitical situation, slowing the rough market significantly from early March.

Polished demand weakened as concerns grew over inflation in the US, Russian sanctions, and the increased and ongoing Covid 19 restrictions in China, all of which contributed to a collapse in confidence amongst rough buyers.

While there have been relatively modest reductions in polished prices in larger sizes +1.00ct, the reduction has been greater in sizes below 0.30 points. The overall uncertainty left rough manufacturers in a very cautious mood, and while they continue to manufacture the rough stock purchased in the early part of the year, current purchases have been reduced, and rough prices have fallen sharply, particularly in sizes below 0.50 carats, and low-quality
material.

Other important factors of the current rough market are reduced liquidity, coupled with the relatively high levels of pipeline stock held by manufacturers. This goes some way to explain that despite the significant reductions in Russian rough coming into the market, there seems to be a ‘lack of appetite’ from rough buyers. We feel that the rough market will now begin to stabilise and against current polished price, rough should reflect close to the prices paid in November/December 2021.

For the past 12 months secondary market prices have been consistently ahead of primary suppliers. This differential has now reduced significantly. Against this backdrop TAGS presented a reduced volume of its regular Southern African productions this month totalling close to $35.0m. Most of the reduction in volume was in the
Single Stone +10.8ct category. We welcomed around 90 companies from all the major
centres.

In contrast to our record sales figure of last month, the outcome of the current environment was that we sold a little less than $20.0m to around 30 companies. Unfortunately, several lots were withdrawn having not reached the required prices.

Our forthcoming Sales event will take place between 4th -10th May in Dubai

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Tender Report May 2022

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Tender Report February/March 2022