Tender Report December 2022
The rough market remains in cautious mood as we approach the important Christmas season. With polished stocks at high levels in the manufacturing centres, rough production has slowed, and a solid level of seasonal polished pull through is required.
Rough manufacturing in India is believed to be at around 50% capacity. This lack of appetite for rough has impacted tender/auction prices, particularly in sizes +3gr, over the past few months, and rough from the leading producers on the secondary market continues to be discounted. Conversely prices of smaller sizes -3gr and cheaper goods have been buoyed by demand to keep factories and workers operative. It is widely anticipated that this area of rough may also see a softening in price in the New Year.
Liquidity shortages with high interest rates remain an issue within the main markets. The polished price index slipped again in November amid concerns around the economic situation in the US and other global economic issues. We understand however that there is a relatively optimistic outlook from retailers in US for the season, although jewellers are holding back on buying inventory due to concerns around economic developments, effectively stimulating the memo market further.
The indications of a gradual easing of Covid 19 restrictions within China should also give hope to a gradual recovery in this important market as we move into the New Year. Trans Atlantic Gem Sales presented another modest production of Southern African rough, totalling in the region of $20m. With several other tender events taking place through December in Dubai we welcomed around 100 companies representing all the major centres.
We saw an increase in sales levels on recent tenders, selling over 70% of goods offered to 31 winning companies based across all the centres. Stones above 10cts performed more strongly, as did goods in the 3-10ct categories. However, 2ct sizes and 3-6grs remain sluggish, while as previously mentioned -3grs sizes are holding firm.
We would like to take this opportunity to thank all our customers for their participation at our events throughout the year and wish you and your families a peaceful festive period and very best wishes for a Happy and Prosperous 2023.
The next Trans Atlantic Gem Sales event runs from 18th - 24th January 2023.
