JNA Nov/ Dec 2021

MARKET INTELLIGENCE 44 | JNA Nov/Dec 2021 Buyer preferences Brooke said Europe continues to buy sapphires from major producers such as Kashmir, Myanmar and Sri Lanka while the US opts for mostly large volumes of commercial and calibrated stones. Chiang of Christie’s Asia Pacific witnessed a surge in buyers from China while Sammoon cited India’s rising interest in blue sapphires of 5 carats to 25 carats for domestic use. Colour is the most important factor in Asia, revealed Kornilov of Gem Matrix, adding that Asian countries are deeply focused on royal blue and cornflower blue sapphires from Sri Lanka. Chinese buyers are keen on blue sapphires but prefer unheated stones and are diversifying from Sri Lankan to Madagascar sapphires, noted Brooke. “China does not want heated sapphires. It is difficult to meet demand consistently unless they start buying fractured stones with fissures,” he added. Other Asian countries meanwhile go for Burmese and Sri Lankan stones while Madagascar gems are gradually being accepted in the market. “Known origin matters a lot when marketing and can set a higher price due to the cost of procuring ethically sourced blue sapphires,” explained Navneet Agarwal of Thailand-based Navneet Gems and Minerals. Agarwal sees the US as the biggest market at the moment. Salahudeen however said gemstones should be priced based on their beauty and not origin, adding, “Indeed, Kashmir sapphires are rare, but those from Madagascar are some of the most beautiful I have seen.” Covid-19 A recent surge in Covid-19 cases in Sri Lanka has resulted in mining disruptions that, in turn, impacted the market, said Agarwal. Salahudeen remarked that Covid-19 affected the industry for a few months only and business has resumed, including e-commerce. He noted an uptick in demand as many dealers are looking to replenish stocks. Industry events have also helped sustain momentum albeit through online platforms. Sammoon explained that the new government in Sri Lanka is working with gemstone associations to provide new rough material to the market. Obtaining the stones directly from their source has become exceedingly challenging, said Kornilov. With the limited supply of rough materials and travel restrictions, “business is mostly conducted with African dealers walking into our offices and selling the rough,” Agarwal explained. He added, “Pre-Covid sales were down because people were saving money. Now people are spending their disposable income, boosting sales by at least 30 per cent to 40 per cent.” Kornilov, for his part, observed a 20 per cent to 30 per cent decrease in sales for commercial-grade sapphires compared to pre-Covid levels. “The market certainly became difficult as majority of gemstone manufacturers relied on international shows for potential buyers. Buyers have become more selective when it comes to sapphire choice and quality,” he added. The medium- to low-quality sapphire market was the worst hit due to slower distribution. Dazzling prospects Bright opportunities await the sapphire industry, said Kornilov, citing new deposits from Madagascar, Sri Lanka, and large quantities of rough from Nigeria and Ethiopia. “The deposits may be larger than expected and contain a great variety of stones, which we are all looking forward to seeing on the market,” he added. A 14.70-carat Kashmir sapphire ring sold at Christie’s Hong Kong in 2020 for HK$10.32 million (around US$1.32 million); 8-carat unheated cushion-cut Sri Lankan royal blue sapphire from Star Lanka Co Ltd 一枚 14.70 克拉的喀什米爾藍寶石戒指，在 2020 年 佳士得香港拍賣會以 1,032 萬港元(約 132 萬美元)成交； 8 克拉無加 熱枕形切割斯里蘭卡皇家藍寶石，來自 Star Lanka Co Ltd