Industry Watch
[Yangon, May 15, 2024] JadeGlobal.com exclusively reports that the Myanmar jade rough market has recently undergone significant changes, with continuous production decline and surging international demand jointly driving up rough stone prices, profoundly impacting the global jade industry chain. According to the latest data released by the Myanmar Ministry of Mines, the total output of Myanmar jade rough in 2023 was approximately 12,000 tons, a 20% decrease from 15,000 tons in 2022, marking a new low in the past decade. This significant drop in production is mainly due to complex geological conditions, rising mining costs, and increasingly stringent environmental policies in major mining areas such as Hpakant and Maw Sit Sit in Kachin State.
Professor Wang Mingyuan from the Gemological Institute of China University of Geosciences (Wuhan), a veteran industry expert, stated in an interview with our website: “The scarcity of Myanmar jade rough is becoming increasingly prominent. The depletion of high-quality veins, coupled with increased government crackdowns on illegal mining, has led to a continuous tight supply in the market. Especially for top-grade rough stones reaching 'ice jade' and 'glass jade' levels, their supply is extremely rare.”
Regarding prices, transaction data from the Yangon Gemstone Exchange shows that in the first quarter of 2024, the average transaction price of high-quality jade rough increased by over 35% year-on-year. Among them, a 3-kilogram rough stone, preliminarily identified by industry experts as high-ice imperial green jade, sold for an astonishing $12 million at the Naypyidaw public tender in March, far exceeding market expectations. The buyer was Mr. Li Hua, a seasoned jade merchant from Guangdong, China. Mr. Li stated in a media interview: “Despite the high prices, the investment value and scarcity of high-quality jade make it still a focal point for collectors and investors. We expect the price of such top-grade rough stones to continue to rise in the coming years.”
At the same time, reforms to the public tender system are quietly underway. To regulate market order, the Myanmar government is gradually implementing a more transparent and open public tender transaction model, aiming to reduce intermediate links and improve transaction efficiency. However, it will take some time for some small mine owners and traders to adapt to the new policies. U Myint, head of the local jade merchant association in Yangon, admitted: “The new public tender rules indeed help combat smuggling and price gouging, but for small businesses with weaker financial strength, the entry threshold has increased, and competition has become fiercer.”
In response to the tight supply and rising prices of rough stones, global jade processing and retail enterprises are actively seeking countermeasures. Some large jewelry companies are extending upstream, establishing direct cooperative relationships with local mines in Myanmar to ensure a stable supply of rough stones. For example, Chow Tai Fook Jewellery Group, headquartered in Hong Kong, has announced plans to increase its direct procurement investment in high-quality Myanmar jade rough by an estimated 20% over the next three years. In addition, technology is becoming increasingly widely used in jade appraisal and transactions, with blockchain technology being introduced to trace the origin of rough stones and ensure transaction transparency and credibility.
However, challenges still exist. Geopolitical uncertainties, mining area safety issues, and pressure for sustainable mining all cast a shadow over the future of the Myanmar jade rough market. How to balance economic interests, environmental protection, and social responsibility will be a long-term challenge for both the Myanmar government and the global jade industry. It is foreseeable that driven by limited production and strong demand, the jade rough market will continue to maintain its high-value attribute and prompt the entire industry chain to undergo deeper adjustments and optimizations.