TAGS Dubai Tender Report - February 2024

Market Overview

Last months tender saw a significant improvement in viewing activity and a slight recovery in sales prices across a wide range of goods.

Again this month, and now with the added knowledge of confirmed results from the important sales season, we have witnessed a strong interest in goods. 

The overall observation is that we have a stable market, but still one with a degree of fragility.

There is no apparent shortage of rough diamonds, but manufacturers are feeling a polished demand challenge globally, and cautious decisions designed to align inventory with demand are key. This is particularly important in the leading export markets of USA and China, which were particularly affected by inflation and economic slowdowns in 2023.

Demand for diamond jewellery in the US holiday season was at a decent level, indicating a positive trend for the industry.  However, against this backdrop it should be noted that Indian exports of polished diamonds from April 2023 to Dec 2023 dropped by 28.2% compared to the previous year. Rough imports for the same period decreased by 23.5% during the same comparative period.   

Following a few months of restrictive rough supply, and a destocking of the polished pipeline in India, there are now a few areas of polished in short supply which are supporting prices.  These are particularly in 1.00-2.00ct ranges in the better qualities, where manufacturers are holding firm on prices.

De Beers maintained prices at the February Sight, but significantly increased volume to approx. $500m. 

De Beers published its annual figures last week reporting a fall in rough sales of 40%, and a reduction in prices of 25% when compared to 2022.

LGD which had such a negative impact on the natural market last year, particularly in the diamond engagement sector, would appear to have reached a price threshold. Further reductions in price would be unsustainable against manufacturing costs.  Demand is likely to persist, with a specific customer base, and as a distinct product category. 

It is considered that jewellers in the US will scale back business in LGD and focus again on natural over the coming year.

Overall, the general feeling is that demand in 2024 will still be very much contingent on geopolitical events such as conflicts, that mighty significantly shape the global business landscape.

TAGS Tender

We witnessed levels of interest we haven’t seen for many months throughout the entire viewing period.

We welcomed around 150 companies from all the manufacturing centres. This indicates a growing appetite from manufacturers, who are slowly building up manufacturing capacity and looking to replenish gaps in stock. However, they remain price conscious. 

We presented a range of high quality Southern African goods, primarily in the +3gr sizes, which included many +10.8ct stones. Interest was particularly focussed on better qualities, from 2ct and up. 

The production was in the region of $30m, and we secured sales of around 80%. We concluded sales to 50 international manufacturing companies.

As expected, demand was strong across most areas with a slight reduction in interest across Spotted ranges, and 2ct sizes. While we didn’t have big volumes, there was very good demand in -3gr/+7 sizes.