Industry Observation
[Yangon, May 15, 2024] Global Jade Network industry observers recently conducted an in-depth investigation into the current situation of jade rough mining, circulation, and market dynamics in Myanmar's major jade rough producing areas and trading markets. The report indicates that affected by various factors, Myanmar's jade rough production continues to decline, but market demand remains strong, and new trading models are quietly emerging, bringing both opportunities and challenges to the industry.
Continuous Decline in Production: Dual Pressure from Resource Depletion and Policy Tightening
Myanmar, as the sole source of over 90% of high-quality jade globally, its rough jade supply directly impacts the global jade market. According to the latest data from Myanmar's Ministry of Mines, jade rough production in 2023 was approximately 12,000 tons, a 20% decrease from 15,000 tons in 2022. This trend was particularly evident in the first quarter of 2024, with a year-on-year decrease of 15%.
“We have to admit that the depletion of high-quality jade veins is an undeniable fact,” said U Myint, a veteran mine owner from the Hpakant mining area in Kachin State, in an interview. “It is increasingly difficult to find a decent 'Mingliao' (jade rough with visible internal quality after cutting). Most are 'Wuliao' (jade rough covered by a weathered skin, making it impossible to directly assess internal quality), which carries high risks.”
In addition to natural resource depletion, the tightening of mining policies by the Myanmar government is also a significant reason for the decline in production. Since 2016, the Myanmar government has suspended the issuance of new mining licenses and gradually reclaimed some expired licenses, aiming to regulate mining activities and protect the environment. However, this has also led to a shrinking of legal mining volumes, and while illegal mining activities persist in some areas, their output is far from sufficient to compensate for the shortfall in legal supply.
Unaltered Market Demand, Chinese Buyers Still Dominant
Despite the decrease in supply, global demand for jade, especially in the Chinese market, remains robust. According to statistics from the Gem & Jewelry Trade Association of China (GAC), the scale of China's end-consumer market for jade reached approximately 80 billion RMB in 2023, a 5% year-on-year increase.
At the Myanmar Jade & Gem Emporium in Naypyidaw, each auction attracts thousands of buyers from around the world, with Chinese buyers accounting for over 80%. The 59th Emporium held in March 2023, despite a reduction in the number of rough stones, still saw a total transaction value exceeding 500 million Euros, including several high-priced star items. A 120-kilogram 'ice-kind with floating flowers' rough stone was eventually acquired by an anonymous buyer from Guangdong for a staggering 12 million Euros, once again affirming the scarce value of high-end jade.
Innovation in Trading Models: Digitalization and Standardization Exploration
Facing the pain points in traditional trading models, such as information asymmetry, high risks, and low efficiency, the industry is actively exploring new trading models. Emerging models like online live streaming for stone viewing, rough jade traceability systems, and blockchain-based digital certificates are gradually gaining acceptance.
At a well-known jade trading center in Yangon, we observed an increasing number of merchants using live streaming platforms to display rough stones. Li Ming, a jade merchant, stated: “Through live streaming, we can allow more domestic buyers to visually inspect the details of the rough stones, reducing their travel costs and time to Myanmar. Although the risk of 'gambling on stones' still exists, transparency has greatly improved compared to before.”
Furthermore, some industry associations and large enterprises are promoting a standardized evaluation system for jade rough, attempting to introduce professional testing equipment and expert teams to issue more authoritative evaluation reports for rough stones, thereby reducing buyer risks.
Challenges and Outlook
The Myanmar jade rough market is in a period of transition. Declining production, policy uncertainties, and a lack of market regulation all pose challenges to the industry. However, strong market demand, continuously innovating trading models, and growing consumer awareness also provide new opportunities for industry development.
In the future, with the stabilization of the situation in Myanmar and the further clarification of policies, as well as the deep application of technology in the jewelry and jade industry, we can expect to see a more standardized, transparent, and efficient jade rough market. However, for investors and consumers, a deep understanding of market dynamics and cautious risk assessment remains the golden rule for entering this unique market.