Tender Report January 2023
The first sale of the New Year took place between 18th - 24th January. We experienced a very good level of attendance from companies representing all the leading centres, and welcomed more than 160 companies, presenting over $20m of our regular Southern African productions.
The event featured a full range of rough, across a broad range of sizes, which included a number of Single Large stones +10ct. During the tender week De Beers reduced prices in some +2ct sizes by as much as 10%, across many quality ranges. Correspondingly we understand that prices in the 3grs sizes and smaller were increased by similar percentages. These changes were expected by the market and brought these sizes more into line with market prices. The 4-6gr sizes however, are still deemed to be expensive.
Quantities of Russian rough have also come into the market. Prices of this rough remained unchanged and again, +4gr sizes are seen as expensive. Demand for smaller sizes and cheaper ranges remains solid, but as reported last month, this remains primarily factory driven and not a consequence of polished demand.
The rough market is certainly not showing any of the exuberance that has traditionally punctuated the beginning of the New Year. There is a cautious mood amongst manufacturers, and they remain very price conscious. Polished demand is slow, and stocks remain high in many areas.
The change of direction around Chinas’ Covid policy has been positive, but manufacturers are adopting a wait and watch approach to Chinese demand. The Hong Kong Jewellery show in March is eagerly anticipated by many. Early reports following the Christmas seasonal sales, indicate little more than a satisfactory level of sales, as the ongoing global economic situation continues to impact on confidence throughout the pipeline.
Seasonal demand for the traditional American products of 1.00ct SI/I1 ranges softened significantly, with some reports indicating a consumer shift into the better value LGD products. This will almost certainly impact the traditional ‘restocking’ period that typically follows the Christmas season, particularly in these size ranges.
In line with recent months TAGS withdrew a little less than 40% of the goods presented. Almost all goods in the smaller sizes -3gr sold through easily in all quality ranges. Stones +10ct performed poorly, and sales in goods +2ct ranges focused a little more on the medium and lower qualities. 3-6gr sizes performed similarly to recent months.
Our forthcoming Tender takes place between February 22nd – 28th 2023
