Industry Observation
[YANGON, May 15, 2024] JadeGlobal.com exclusively reports that the Myanmar jade rough market has once again become the focus of the industry. Influenced by geopolitical factors, depletion of natural resources, and policy adjustments, the global supply of jade rough continues to tighten, leading to astonishing price increases over the past year, posing new challenges and opportunities for the entire jade industry chain.
According to the latest data released by the Myanmar Ministry of Mines, jade rough production in the Hpakant region of Kachin State decreased by approximately 18% year-on-year in 2023, marking the third consecutive year of decline. Dr. Chen Wei, a senior mining analyst, stated in an interview with our reporter: “Hpakant, as the world's primary source of jade, has any fluctuation in its output profoundly impacting the global market. The current decline in production is not a short-term phenomenon but is due to the increasing scarcity of high-quality veins and significantly higher mining difficulties and costs.”
The decline in production directly fueled the surge in rough prices. Data from the Yangon Jade Trading Center shows that from the second half of 2023 to the first quarter of 2024, the average price of medium to high-grade jade rough increased by 30% to 50%, with some top-tier 'Imperial Green' rough experiencing increases of over 80%. For instance, at the Naypyidaw Jade Bidding held in March this year, a 3.5 kg 'Ice-type Vibrant Green' rough stone was sold for an astonishing US$2.8 million, far exceeding market expectations. Li Ming, a jade merchant from Jieyang, Guangdong, who won the bid, commented: “Good material is so hard to find now. To ensure our supply chain, we have to secure it even if the price is a bit higher.”
Such price increases are not unprecedented. From 2011 to 2014, Myanmar's jade rough prices also experienced a surge, but the current increase is more rapid and is influenced by a combination of complex factors. On one hand, the unstable political situation in Myanmar has restricted mining activities in some areas and posed risks to transportation routes. On the other hand, increased environmental awareness has led the government to intensify its crackdown on illegal and extensive mining, further regulating the market but also limiting supply.
For downstream processing and retail enterprises, the soaring price of rough undoubtedly brings immense cost pressure. Jade processing bases in Pingzhou (Guangdong), Jieyang, and Ruili (Yunnan) have reported that increased raw material costs are squeezing product profit margins. Some small processing plants even face the risk of suspension. However, crises also contain opportunities. The scarcity of high-end jade is further highlighted, and its collection and investment value continue to rise. Ms. Wang Li, an international jewelry appraiser, believes: “In the future, the jade market will focus more on quality rather than quantity. Companies that can acquire high-quality rough, possess exquisite processing techniques, and have brand premium capabilities will stand out in the competition.”
Facing current challenges, the industry is actively seeking countermeasures. The Myanmar government is considering introducing a more transparent bidding mechanism and strengthening management of mining areas to stabilize market expectations. Simultaneously, some Chinese enterprises are exploring closer cooperation with local Myanmar mine owners and even trying to improve rough utilization through technological innovation. However, to completely solve the problems of supply shortage and price fluctuations, multi-party efforts are required, along with close attention to the evolving situation in Myanmar.
JadeGlobal.com will continue to monitor the dynamics of the Myanmar jade rough market, providing the latest and most authoritative information and analysis to the industry.