TAGS Dubai Tender Report - May 2024

Market Overview:

The rough market finds itself in a state of turmoil as we enter the month of May. The seasonal slowdown in April was exacerbated by weak demand in both the Chinese and American markets.

Polished prices in the better quality VS+ goods have continued to slide, while SI material, the area hit hardest last year by LGD, has rallied, maintaining a trend we have seen since January.

Sales of polished have been slow during April, with high inflation and interest rates impacting consumer spending in America. Chinese buyers have continued their preference to invest in gold over diamonds. Another point of concern was a comment made by De Beers CEO (Idex 07 th May) was that “many Chinese consumers saw no difference between LGD and natural”, taking no account for the value proposition.

The resultant rough market is sluggish due to weak polished demand.

De Beers May Sight saw price reductions in sizes -6grs of between 4-6%, with the higher end of reductions on -3grs material. Prices of 5-10 cts increased slightly, but mainly because of improved assortments. Manufacturers feel the reductions are still insufficient.

Delays in the exit of goods throughout April from The Antwerp Customs Office, because of the implementation of European Union rules around sanctions on Russian rough diamonds, created further tensions in the rough market. Plans to make Antwerp the single inspection point for all diamonds entering G7 countries faced huge opposition from across the industry.

News of a potential bid for Anglo American Corp. has also been widely reported, coupled with rumour that De Beers might be sold off has further created a sense of insecurity within the industry.

The trade will now likely shift its focus to the upcoming Las Vegas Show, in the hope it might kick-start the wholesale market ahead of the holiday season.

TAGS Tender:

We hosted one event in May, presenting a range of high quality Southern African productions.

As with other recent tender results in Dubai, the outcome was mixed, with a higher than average volume of goods unable to reach the sales price. A combination of reduced confidence in the rough market and factory holidays in India are the main factors for the current malaise.

Factories will reopen at the end of May and will hopefully be looking for a degree of restocking to take place, although we expect prices to remain steady.

Our next tender will commence on 11 th June through to 16 th .