MARKET WATCH REPORT
There was a wealthy man known as being very eccentric. One night, he was having a big party at his house. In his house there was a swimming pool filled with crocodiles and sharks and he offered to grant every wish for any brave man who would swim across the pool. In a second, there was a splash and a man was swimming like crazy. He got to the other side and jumped out. The wealthy man was overwhelmed and excited and said to him, “I can’t believe it, you are the bravest person I've ever seen. What do you want me to give you?” And the man, dripping water and trembling, said, "I want most the name of the man who pushed me in."
Well, is it really necessary to be pushed in… just to start taking brave measures?
January sight was confusing. There was a price decrease in some of the boxes including 2cts., Pique, Non Pique, Blacks and even in Commercial, which was 6% lower than the previous month. The decrease was based on the assumption that the assortments were improved.
According to some sightholders, however, it was a false assumption. This is significant because the false view led to low offers, which in turn also influenced the Polished market. As the market illusion was that Rough prices went down, the Polished market experienced low offers as well.
I spoke with many sightholders about this frustration, and a growing number of them are now considering rejecting any box that doesn’t show profit.
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Some say that the best indicator for the situation is that ODC's assortments on similar boxes (such as White Near Gem) started with 93 contestants, which is triple the usual number of bidders. OCD’s prices were higher by approximately 5% this month and even so, the OCD was less expensive than the DTC prices.
In other Tenders, rumors are that the prices were also high. It seems that the consistent demand is keeping prices inflated.
The Indian market reports that factory production is at only 50% of maximum capacity. Therefore, there are less and less Polished diamonds offered. When an actual shortage of Polished diamonds becomes noticeable, the prices will increase and manufacturers will, in turn, increase production.
Cash flow management is the issue now. Have we had enough? Is the sun about to rise on a new horizon? Are the consumers finally showcasing their significant power?
It is not the best time for manufacturers, but given the market history which is familiar with ups and downs, it’s time to stop nurturing the wounds. Stop looking for someone to blame. Take the reins in our hands and consider calculating a new route. Sight two is around the corner. Are we standing in the doorway of a new era, or must we be pushed?