Chinese merchants manipulating Myanmar jade market

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Myanmar gem merchants accused their Chinese counterparts of manipulate the jade prices out of concern that they would lose out to foreign competitors as more and more Westerners are entering the business.

The accusations were made after the 50th Myanmar Gems Emporium, held at the Nay Pyi Taw recently.

At the Gems Emporium, 272 gem lots went through tender system, and 107 gem lots through auction system. They were sold to the local and foreign merchants.

Foreign merchants had to pay Euro 5o,ooo as deposit, local gem merchants had to pay Euro 20,000 as deposit and local and foreign gem merchants had to pay Euro 10,000 deposit to Myanmar Economic Bank (Nay Pyi Taw) in advance.

At the emporium, Chinese gem merchants offered much higher bid for the jade rather than market price. But they would not show up to collect the jade even though their deposit would be not be returned.

“The intentions of these acts are to create chaos in the gems and jade markets,” according to local jade merchants.

“In the past emporiums, the Chinese gem merchants bought these gems and jades by paying a little price only. They profited multiple advantages from reselling them in Western market. We accept these conditions given the political situation at the time,” one Myanmar merchant said.

“But now it’s the time for transparency. They should not use dishonest tactic. In the recent emporium, their offers were ten times more than what the Western buyers had offered. But afterwards, they didn’t show up to collect the gems.

“The main reason was that the Chinese didn’t want to give the price given by the Western gem merchants“ one Myanmar merchant said.

Until the 49th gems emporium, only China dominated the market. This time, international gem merchants came. What they feared was that they were to lose their market. That’s why by forming groups, they are systematically creating to cause chaos at the gem emporium,” said U Lin, who sold jade lots at the Nay Pyi Taw gems emporium.

There were only two companies who didn’t show for the material after they won the auction but there were 200 jade lots. Offering the highest bid but didn’t show for the material causes a great set back for the local jade business.

These gems and jade lots are to sell to China through Shwe li market as a last stage according to the gems merchants.

Source: Eleven News Media

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