Tender Report November 2022

The reopening of factories in India post Diwali was generally delayed by 2 weeks in response to sluggish market conditions. The challenges that faced the market in the lead up to the Diwali holiday remain unchanged. Global economies are still facing rising inflation rates and consumer demand for polished is slow, with prices softening.

Hopes that China would show signs of improvement have not been forthcoming as it persists with its pandemic policies, causing great concern amongst the midstream players. Supplies of Russian rough, which we understand had been finding their way onto the markets, despite severe restrictions, have now all but ceased. This in part explains why the prices of smaller sized rough has remained relatively firm, while 3 grainer and larger sizes have seen a greater level of correction over the past few months.

Manufacturers refrained from buying rough in the lead up to Diwali, which also supports the current demand for smaller sizes and cheaper qualities which are required for the factories that will be reopening now. This factory driven demand will likely remain on hopes of good Thanksgiving and seasonal sales.

In the midstream, Indian manufacturers face further challenges of high levels of polished stocks, reported to be between 4 and 5 months, coupled with reduced liquidity and high interest rates.

Trans Atlantic Gem Sales presented around $23m of Southern African production to over 120 companies, from all the leading centres. Due to the more commercial ranges of goods shown this month, across a full range of sizes, we were successful in selling a higher proportion of goods than in September. Selling prices were in line with last month, and we did not see any further decline in price in the + 3gr ranges. Smaller sizes maintained their price, and there was a marginal increase in cheaper ranges and Brown goods.