TAGS APRIL MARKET & TENDER REPORT

Market Report

Since our last report at the end of February, our industry and indeed the world has been cast into yet another period of unexpected instability.

Consequently, the markets have taken a ‘wait and see’ position and remain relatively quiet.

The new list of De Beers Sightholders, while well-known, but to date not officially announced by De Beers, has had very little impact on the market.  Some feel that the pricing policy of De Beers over the past two years has resulted in the company having less relevance within the industry.

More importantly with the deadline for expected sale of De Beers upon us, the market hopes that the new custodian will be able to re-establish the leadership of the company, which instilled confidence for so many years.

It has been recently reported that Botswana retains its ambition to buy a controlling stake in De Beers, which could dampen interest from some of the private investors who have expressed an interest.  However, with the protracted financial difficulties the prolonged slump in the diamond industry has presented, this has led to realistic expectation that the Government might settle for a larger minority stake, allowing the company to remain in private ownership.

There are at least 3 private groups interested and the deadline for bids was16th April.

Rough

The leading producers continue with a policy of tight distribution. Alrosa have announced they will delay sales until May, which will help the market.

Alrosa recently reported an improvement in rough prices above 2 carats which is very much in line with what we have been reporting in recent months.  This size range represents around 80% of the Russian production by value, and they have consequently increased prices by between 6-9% during the first quarter of 2026.

De Beers reportedly increased prices in the larger sizes during its March Sight, and ODC saw prices increase in high quality goods +5cts.

Overall global rough supply is expected to fall below 100m carats during 2026, the lowest level in 20 years.  Rough production continues to consolidate as numerous small producers have become uneconomic in recent years.

 Additionally, Diavik has ended production at its Canadian Mine.

Polished

With the combination of war, tariffs and soaring metal costs the global jewellery industry continues to be under pressure. What is clear is the disparity in demand for high quality larger sizes versus the smaller sizes 1ct and below.

US sales continue to reflect higher revenues with reduced unit sales. Polished imports have fallen by 86% year to date, which reflects the imposition of tariffs, economic uncertainty, and stock market volatility.

Interestingly despite the reduction of imports into the world largest market, Indias export figures reflect a reduction of only 11% year to date.  This indicates a diversification into other markets such as China, Japan, and the domestic market.

The Middle East war has undoubtably impacted trade, across the Gulf, resulting in store closures, less tourism sales, and shipping disruptions.

So far as LGD are concerned, recent analysis indicates a further 14% drop in price against a background of softer trading and high inventories.

TAGS Tenders

Since the beginning of the war in the Middle East on 28th Feb, some Dubai based tender houses have moved rough sales to Surat. 

Conversely, TAGS has remained in Dubai, successfully presented 3 sales events, with a combined value of approx. $40m. 

Two Zimbabwe productions and one high quality Southern African production have been concluded.

Attendance, while marginally impacted has remained high and we believe this is testament to the loyalty of our entire customer base, the secure environment and support provided by DMCC/DDE and the quality and presentation of the rough we have been offering.

The 2 Zimbabwe productions totalled approx. 800,000cts with 100% sold. We welcomed more than 80 specialist companies from all the leading centres.

The Southern African gem production featured many Special stones +10cts, in addition to a full range of high quality rough. As usual the event was well supported by close to 100 manufacturers from all the centres, and we are delighted to report an 80% sell through. 

Additionally, during this period TAGS have concluded a sale through our Johannesburg office.

Around 90% of the invited customers attended to view a range of rough close to 8000cts, including high quality marine productions as well as land-based production from our mining partners in SA, across a full-size range.  Again 80% of goods presented were sold, including an Exceptional 30ct top quality stone, and two Fancy/Vivid Yellows of 27ct and 46cts respectively.  In several cases prices achieved exceeded the expectation of our suppliers. 

Through our association with Sodiam in Luanda we hosted a tender concluding in early March.  We invited 42 specialist companies across all the major centres to view 74 Exceptional stones. 

70 stones were sold at prices that exceeded reserves by over 22%, enforcing the strong demand for high quality large sized rough.

In Dubai our forthcoming Southern African sale will take place between, 14th – 18th May. 

Dates for additional events to follow.