Industry Observation
As 2024 begins, the global jadeite rough market is undergoing a profound transformation. Myanmar, the sole source of over 90% of high-quality jadeite worldwide, has seen its internal policy adjustments decisively impact the global supply chain. Concurrently, China's growing demand for collection and investment has added new impetus to this transformation.
Myanmar's Policy Tightening Poses Supply-Side Challenges
Since the second half of 2023, the Myanmar government has been increasingly strict in its management of jadeite mining areas. According to the latest data released by Myanmar's Ministry of Mines, the number of approved jadeite mining areas in 2023 decreased by 15% year-on-year, and the approval process for new mining licenses has become more complex and lengthy. U Kyaw Min, a veteran mine owner in the Hpakant region of Mandalay Province, told a 'Global Jadeite Network' reporter: “The government's emphasis on environmental protection and labor rights is unprecedented, which undoubtedly increases our mining costs and operational difficulties.” According to incomplete statistics, the volume of jadeite rough extraction in the Hpakant region in the first quarter of this year decreased by approximately 20% to 25% compared to the same period last year.
This tightening of the supply side has directly led to a surge in rough stone prices. At the annual jadeite open tender held in Naypyidaw, Myanmar, competition for high-quality rough stones was exceptionally fierce. On March 15, a rough stone weighing 120 kilograms, assessed by the industry as 'ice-kind positive green,' was finally sold for an astonishing 280 million RMB (approximately 39 million USD), setting a new record for open tender transactions in the past five years. Li Ming, a jewelry merchant from Ruili, Yunnan, China, who participated in the bidding, stated: “Good material is too rare now; we must acquire it at any cost.”
Robust Demand in the Chinese Market, Investment and Collection Boom Continues
Despite the tightening supply, demand for jadeite rough in the Chinese market has shown counter-cyclical growth. According to the '2023 China Jewelry Market Report' released by the Gems & Jewelry Trade Association of China, the retail sales of jadeite products in China grew by 12.5% year-on-year, with high-end jadeite seeing an even more significant increase of 18%.
This growth is not merely driven by traditional wearing demand; investment and collection have become significant market drivers. At Beijing's Panjiayuan Antique Market, veteran jadeite connoisseur Wang Defu pointed out: “There is uncertainty in the current global economy, and jadeite, due to its scarcity and cultural value, is increasingly regarded by investors as an excellent asset for preserving and increasing value.” He further explained that rough stones with complete outer skins, excellent clarity and texture, and some visible 'windows' are particularly sought after. Since the beginning of this year, the trading activity of high-quality jadeite rough in the Panjiayuan market has increased by approximately 15% compared to the same period last year.
Industry Chain Facing Adjustment, Future Trends Outlook
Myanmar's policy tightening and China's robust market demand are reshaping the global jadeite industry chain. On one hand, small processing enterprises that rely on low-cost rough stones face survival challenges, and industry consolidation may accelerate. On the other hand, leading enterprises with stable supply channels and strong financial strength are expected to further expand their market share.
In the future, as Myanmar's environmental regulations are further improved and efforts to combat illegal mining intensify, the legal supply of jadeite rough is expected to remain constrained. This will prompt jadeite merchants in China and globally to pay more attention to the refined utilization and value maximization of rough stones. At the same time, consumers will also demand higher transparency and sustainability regarding the origin of jadeite. Industry experts predict that jadeite products with traceability systems and brand reputation will be more favored, and the application of technology in jadeite identification and valuation will become increasingly popular, such as spectroscopic analysis and CT scanning, to ensure fairness and transparency in transactions. This transformation, driven by both policy and market, indicates that the jadeite industry will enter a new era that is more standardized, challenging, and full of opportunities.