TAGS reports low demand from rough buyers

Polished demand weakened as concerns grew over inflation in the US, Russian sanctions, and the increased and ongoing Covid 19 restrictions in China, all of which contributed to a collapse in confidence amongst rough buyers, says a press release from TAGS.
According to TAGS, while there were relatively modest reductions in polished prices in larger sizes +1.00ct, the reduction has been greater in sizes below 0.30 points. The overall uncertainty left rough manufacturers in a very cautious mood, and while they continue to manufacture the rough stock purchased in the early part of the year, current purchases have been reduced, and rough prices have fallen sharply, particularly in sizes below 0.50 carats, and low-quality material.
Other important factors of the current rough market are reduced liquidity, coupled with the relatively high levels of pipeline stock held by manufacturers. This goes some way to explain that despite the significant reductions in Russian rough coming into the market, there seems to be a ‘lack of appetite’ from rough buyers.
Tags feels the rough market will now begin to stabilise and against current polished price, rough should reflect close to the prices paid in November/December 2021.
TAGS forthcoming Sales event will take place between 4-10 May in Dubai.

Aruna Gaitonde, Editor in Chgief of the Asian Bureau, Rough&Polished