TAGS Dubai Tender Report - March/April 2024

Market Overview:

The rough market remains fragile amidst several disruptive issues which continue to be of concern.

The imposition of G7 sanctions commencing March 1st created significant blockages of goods in Antwerp, which we believe are now easing slowly, but concern from dealers remains. In the meantime, Alrosa have reportedly sold the entire March production to Russia’s Ministry of Finance (Gokhran). This is indicative that G7 sanctions are finally influencing gem sales to a greater degree in Russia.

Importantly, this reduction in rough coming into the market is helping to destock the polished pipeline and support polished prices. Polished demand in the US remains patchy, with demand for the 1.00-1.50ct ranges remaining weak. Demand is steady in the larger sizes. In India demand is weak from overseas markets, and the implementation of Antwerp’s sanctions, is a cause of concern to many smaller manufacturers.

Following the Hong Kong Show polished sales have remained steady, but the market has low expectation as Chinese demand is poor with a greater focus on gold at the present time.

The De Beers Sight commenced this week and prices broadly remained the same. Clients report that most goods -6grs are expensive still. 2-10ct ranges are reasonably priced, but the resultant polished is slow moving, and -3gr sizes are generally trading at a loss. Overall, the Sight is estimated to be between $ 400- 450m, with Ex Plan sales being offered.

TAGS Tenders:

During the past 4 weeks we have presented 2 tenders totaling approx. $50m of high quality Southern African production to a customer base of around 150 companies.

Levels of interest have been good, and with some destocking of the polished pipeline, and a little more liquidity in the market manufacturers are buying, albeit selectively.

TAGS welcomed new customers during the month from all the major centres including the US. Sales were made to total of around 60 companies from all the major manufacturing regions.

Recent tender results in Dubai have been varied with some tender houses declaring increased levels of withdrawals across many areas. Our findings would indicate a continuation of slower demand in the 3-8gr ranges, and a slight deterioration this month in demand/prices in 3-10ct ranges.

+10ct prices remain firm and Fancy coloured material evidence strong demand across all sizes.

Our next tender in Dubai is scheduled for 7th – 12th May.