Slow market conditions shroud 28th June Hong Kong Jewellery & Gem Fair

Sluggish market conditions, liquidity crunch continue to be matter of concern at the recently concluded HK fair.
Slow market conditions shroud 28th June Hong Kong Jewellery & Gem Fair

The 28th Edition of June Hong Kong Jewellery & Gem Fair recently concluded on a luke warm note. The show was held from June 25 till June 28 at Hong Kong Convention and Exhibition Centre.

Hong Kong is considered to be the major gateway to the South East Asian markets and the HK fair is touted as one of most important trade fairs. In the recent past, there have been quite few concerns like liquidity crunch, slowing demand from China, slow market conditions have been plaguing the gem & jewellery industry. The JCK Las Vegas show, too, was no different. However, the JCK show did show some signs of positivity and improvement in the American markets, thus, indicating better conditions in the near future.

This year at HK fair, though China exhibitors were in good numbers, Chinese buyers were missing from the buying scene. Those who were around were keener on buying cheap goods considering the slower market conditions in China. However, exhibitors are hoping for a better season ahead.

Vipul Sutaria, Dharmanadan Diamonds says “We have received decent response though nothing overwhelming. Markets should get back to normal in coming weeks.”

As far as diamonds are concerned, bigger diamonds from Antwerp and Israel, which weren’t cheap, did not face any price break down. These companies could hold on to their goods as the companies are not overleveraged. While few companies gave higher discounts and sold goods below cost in order to get the cash flowing.

The exhibitors weren’t holding any high expectation after the dismal response at the JCK show. Vicky Mundra, Sunny Gems said “It was expected that the show will be slow. Anyway, it is mid-season buying and we don't see much volume but comparing with previous years, it is certainly slow this year.”

The coloured diamonds remained stable and were well-received at the show. Ajay Jakotia, Kunming Trading Company said “Coloured diamonds have minimal effect of slowdown; they are moving and prices are stable. We have received decent queries and business.” His opinion was seconded by Yogendra Sethi, Intergem Exports.

Amongst the gemstones, last year’s hottest gemstone Tourmaline did not garner much response. There were lesser buyers for it and lack of enthusiasm was witnessed. Rough price correction is expected for Tourmaline. Tanzanite, too, received lukewarm response. Price correction of raw material of Tanzanite is expected.

Mozambique Ruby was in much talked about but not many buyers were seen. The polished prices of Mozambique Rubies were not matching with the rising rough cost.

One of largest dealer of gemstone said “The sales are down by 70 per cent as compared to the last June show.”

The exhibitors are not only troubled by the slow response at the show but the rising business transaction cost, insurance, logistics, hotel cost is now pinching lot of exhibitors. Many exhibitors signaled at there will be a wave of change in the business as the new players with strong cash flow will come in while the earlier members have to go out.

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