TAGS Dubai Tender Report - January 2024

Market Overview

While it is still too early to gauge the full results of the Christmas selling period in terms of polished pull through, the rough market has opened in slightly more optimistic mood.

Initial reports however coming from US retail would indicate a mediocre level of sales.

While we are not witnessing the exuberance often associated with the beginning of a new year, the last few months of reduced rough imports into India and lower levels of rough supply, has stabilised the market and improved liquidity resulting in some requirement to restock the factories.

De Beers presented a small Sight for January, estimated to be in the region of $300m, and dropped prices by an average of 10-15%, to stimulate sales which have been severely curtailed in the past few months. 

Although this has brought boxes directionally more into line with equivalent market prices, manufacturers report that goods available at tenders still provide better value.

Generally, the average price reductions focussed on areas 0.75cts - 4cts, while some 2-4ct ranges producing lower qualities (SI2/I1) were reduced by as much as 25%. Sizes below 0.75cts remained broadly steady.

Polished prices appear to remain stable in January, but dealers remain cautious about the outlook for 2024. 

Chinese demand is still weak as we approach the Lunar New Year with consumers turning to LGD and semi-precious stones to meet lower budgets. A decline in polished inventories in India has also certainly helped to keep prices steady.

TAGS Tender

We welcomed more than 90 companies from all the leading centres, an increase on last months attendance.

Amongst those, we were delighted to see a return of several of our Israeli clients who did not attend in December. Overall, the mood amongst customers was positive, and with several other tenders taking place in Almas Tower, there was a strong presence of buyers in Dubai.

This month we presented a slightly smaller than average tender, consisting of more than 20,000 carats with a value of more than $20m.

Goods were of the regular Southern African origin and focussed primarily on sizes +3grs. We also offered a number of high-quality stones +10cts.

Bidding was strong across all ranges and in terms of prices we noted a strengthening of a few percent compared to December across most ranges from 3grs to +10cts.

Overall, we sold in the region of 75% of goods presented to 44 companies, from New York, Belgium, Israel, and India.

We hope to return to a more regular, larger tender in February. 

The event runs from 20th – 25th February.