Trans Atlantic Gem Sales (TAGS) hosted its February 2020 Tender between the 21st and 26th in the Dubai Diamond Exchange facility. TAGS presented their standard productions from South Africa and Angola with volumes offered in the region of 30,000 carats at a value of approximately US$30m, according to the press release from the company.
With the De Beers Sight being held in Botswana during the week commencing the 24th of February, TAGS welcomed clients both on their way to Botswana and on their return. Reports regarding the Christmas season were positive and following a difficult 2019, the year started with a little more optimism with some areas of increasing polished prices, less stock in the midstream and restocking demand from manufacturers.
Image credit: TAGS
TAGS, however, states that the optimism was short-lived as the market is currently reeling from the severe impact of the Coronavirus which follows the protracted protests in Hong Kong against the Chinese Government. Hong Kong and China receive approximately 35 to 40% of Indian polished exports, and the current situation has brought the business in the region to a virtual standstill.
With almost no activity at retail in China and many Indian companies pulling their staff out of their Hong Kong offices, the impact on sales and more importantly finance have been immense. Where possible manufacturers are shifting polished sales to other markets, but many Indian manufacturers producing +VS polished in the 0.30-0.50 points category have no alternative other than to scale back manufacturing and therefore their corresponding rough purchases at the present time.
Although TAGS’ customers demonstrated extreme loyalty to the company evidenced by their bids, its producer partners had no alternative but to withdraw some lots, concluding TAGS’ sales at around 70% of goods presented.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
