TAGS June Market & Tender Report (Dubai, Luanda, Johannesburg)

MARKET OVERVIEW:

In our March 2025 Report we were cautiously reporting a slight improvement in rough prices in certain areas, with a general improvement in market stability.

However, just one month later and due to the blunt application of US Govt. tariffs on imports in early April, we found the market again in turmoil, with confidence shaken. While the overall effects across global economies and stock markets were well publicised, the effect on the diamond industry had also been severe.

Since then, there have been several positive developments in the industry that have aided in the stabilisation and improvement in rough diamond prices globally;

The recent JCK Las Vegas show delivered a stronger than expected performance, particularly in the jewellery segment. This has provided a welcome boost in sentiment across the value chain, with buyers showing renewed confidence in consumer demand. The show is often seen as a barometer for the US retail market, and its relative success has reassured both manufacturers and dealers, encouraging restocking and production planning.

Both De Beers and Alrosa, two of the largest rough diamond producers globally, have signalled significant supply reductions in the near term. De Beers announced a suspension of production for May, June, and July, while Alrosa has indicated that all of its second-half production of smaller goods will be allocated to Gokhran, Russia's state gem repository. These anticipated reductions in supply are contributing to increased competition for available goods, driving price improvements across many categories.

With the Indian summer holidays now concluded, manufacturing centres in Surat and elsewhere have resumed operations in full. The return of factory activity has generated a wave of new demand, as manufacturers seek to replenish inventories and secure goods for the coming production cycle.

Cautious production planning over the past 12 months has led to depleted inventories of both rough and polished diamonds in key trading centres such as Surat. With manufacturers having taken a conservative approach during the market downturn, many are now facing the need to restock in the face of renewed demand. This inventory gap is placing additional upward pressure on prices as buyers compete for limited supply.

TAGS TENDERS:

For the first time ever, Trans Atlantic Gem Sales (TAGS) successfully conducted three simultaneous sales events across three countries, the United Arab Emirates, Angola, and South Africa.

All three sales took place from Monday to Friday, 23rd to 27th June and we are proud to report excellent results in each location:

Dubai:

At our Dubai event, we showcased our regular Southern African production, achieving a strong sell-through rate of 90%.

Luanda:

In partnership with SODIAM E.P., our tender in Luanda featured 17 large +10.8ct rough diamonds, including several exceptional specials, sourced from four participating mines. The response was overwhelmingly positive, with 15 of the 17 stones sold at prices far exceeding the mines expectations. Total sales surpassed USD15.5 million.

Johannesburg:

Most notably, this period marked the launch of operations at our new state-of-the-art facility in Johannesburg. We are extremely grateful for the strong support from local producers and are encouraged by the growing interest in future events. The sale included four exceptional stones: two white stones of over 40 carats each, and two fancy yellow stones of approximately 70 and 35 carats respectively, all of which were sold.

The success of our first South African sale is a testament to the value of bringing TAGS’ globally trusted platform and transparent approach to the local market. Here we achieved sales in the region of 80%.

Across the three tenders, we welcomed over 200 companies from all major global diamond centers. Participation from Israeli clients was understandably lower due to recent unrest in the region.

As we reflect on this milestone, we are encouraged by signs of renewed market activity and remain committed to working closely with both our suppliers and buyers to sustain this positive momentum.