Tender Report February 2023
Our February Tender took place between February 22nd – 28th.
As ever we welcomed many regular companies from all the major manufacturing centres in addition to some Israeli companies attending for the first time. We presented a relatively conservative volume of goods in line with recent events, to around 120 companies. The production was the regular Southern African range containing a full range of sizes to include a large number of Single Stones +10ct.
This month the material presented attracted increased praise from customers due to the overall composition, which was much appreciated. We were also able to present several nice fancy-coloured stones in the +10ct range. The overall reaction this month would indicate a slight improvement in the mood of buyers. While Small sizes and goods below $100, remain extremely popular, there is a growing interest in the 3-6gr ranges, which have suffered during the past few months, and in 2-4ct better qualities.
While the reasons behind demand for small cheaper goods has been well explained in previous months, an upward shift in prices across other ranges is yet hard to justify in the context of polished price movements. However, we understand that gaps are beginning to appear in manufacturers stocks, which is positive. 5–10ct goods remain a little slow, with +10ct demand continuing to be selective.
We understand that Russian goods were not offered this month, and goods from January have been slow to filter into the market, creating some short term shortages. In general, the impact of severe rough shortages that last years’ sanctions might have caused within the rough market have failed to materialise, and rough goods from Russia have generally found their way onto the markets. However, the economic uncertainty that has fueled high interest rates and high inflation continues to dampen demand in the retail sector.
Polished prices have broadly been in decline for the past year, but there are feelings that the effect of the war in Ukraine on global economic growth is beginning to taper off, and a cautious optimism is evident. The Hong Kong Diamond, Gem and Pearl Show which commences this week is eagerly anticipated and could signal the beginning of a recovery in the Chinese market, following years of stagnation.
We are pleased to report an approx. 90% sell through of goods offered, with prices increasing on recent months, and only some withdrawals in +10.8ct goods. This marks a significant improvement on recent months, and we hope a cause for a little more optimism as we head towards the 2nd quarter.
Our next sales event will take place in Dubai between 29th March - 4th April.
