TAGS Dubai Tender Report - June 2024
Market Overview
With the holiday period in India now over, the market remains in a cautious mood.
The rough market remains slow with prices remaining stubbornly flat in most categories.
Oversupply of rough during the past year, combined with a decline in consumer demand resulting from the global macro-economic issues discussed in previous reports, continue to impact the industry. This has led to price erosion in both rough and polished prices.
The main markets of America and China have embraced lab grown and a shift to gold jewellery respectively, which has further impacted the rough diamond industry.
As if this wasn’t enough the news that De Beers faces an uncertain future, has exacerbated the mood of uncertainty.
Customers attended the JCK Fair in Vegas early this month with low expectation, and still the overall reviews were mixed. While the show is predominantly a jewellery focussed event, there is an obvious knock-on effect for the rough diamond industry.
While lab grown diamonds continue to present competition to the natural product, there was an improved performance in many SI clarity natural stones.Some leading rough manufacturers saw an improvement in demand for these goods as falling prices for lab grown have eroded retail margins and created a return toward natural products. Several customers reported that there is a belief that the market has reached the bottom, and we may now be on a slow upward trajectory.
De Beers stated its strategy going forward which focussed on detection of lab grown diamonds at the retail/consumer level, using affordable new technologies, the closure of its own lab grown production facilities for diamond jewellery, and a return to the most significant marketing commitments for natural diamonds, in 20 years.
This is positive news at a time when the industry needs leadership, vision and direction. A significant focus on Chinese, US, Indian markets could help drive significant growth, but marketing comes at a high price and will need an industry wide effort.
TAGS Tender
We presented our regular range of high quality Southern African productions, incorporating a full-size spread, and close to 100 Single stones +10.8ct.
We welcomed around 110 customers from all the leading centres.
We did however experience several cancellations during the week, which underscores the fragility in the market.
Sales results reflected the underlying weaknesses in the polished market, and the abundance of available rough.
Sales of +10.8 ct goods remain generally steady, while high quality rough across most sizes, continue to show weakness as compared to lower qualities producing S1 polished.
The next TAGS Tender will take place between 1st-5th July 2024.
