Tender Report August 2022
The western markets have now reopened after the summer break, and we welcomed over 100 companies from all the leading centres to attend our event which commenced on 17th August.
The global uncertainty that has developed over the past few months continues to dominate the behaviour of buyers, and this was evident throughout the week.Several factors have combined to negatively impact the industry at the current time. Ongoing political and economic uncertainty has had a significant impact at a consumer level, and consequently the diamond pipeline has slowed.
High polished stocks combined with reduced liquidity in the market have resulted in a cautious and more selective approach from buyers, and a corresponding reduction in polished prices in some areas. China remains slow as extreme Covid related restrictions continue to impact the recovery of the economy. The US consumer has also taken a more cautious approach as interest rates and the economic situation continue to impact consumer spending.
Manufacturing activity in India has slowed and several religious holidays have resulted in additional closures of factories in Surat. Reflecting the current market position, Trans Atlantic Gem Sales presented a smaller volume of rough than usual this month totalling in the region of $30m.
The goods were the regular presentation of Southern African rough across a full-size range and included many Single Stones +10cts. While the commercial composition of the material presented met with a positive response, we secured sales of some 60% of the goods to around 35 companies from all the major manufacturing centres.
Areas where we saw weakness in price were, 2-4ct /3-6grs, better quality ranges. Goods below 3grs and cheaper ranges fared better. Rumours of significant volumes of Russian rough finding its way to the Indian market through non-dollar channels have undermined the possibility of any potential shortfalls in polished availability creating additional concerns.
Our next sales event will take place in Dubai between the 21st and 27th of September 2022.
