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Rapaport Weekly Market Comment
Aug 25, 2016 11:00 AM
By Rapaport News
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Far East markets waking up with
increase in activity as dealers prepare for Hong Kong show. Far East demand for
larger 3 to 8 ct. stones getting more attention with D-F, IF-VVS goods
becoming more interesting after price declines in recent months. U.S. market
uncertain with some action in New York during DDC’s India Week. Signet 2Q sales
-3% to $1.4B, profit +6% to $82M as private equity firm Leonard Green invests
$625M. Tiffany 2Q sales -6% to $932M, profit +1% to $106M. Michael Hill FY
revenue +10% to $421M, profit -29% to $15M. Dominion 2Q sales -24% to $160M.
Swiss watch exports -14% to $1.7B in July. India July polished exports +1% to
$1.7B, rough imports +27% to $1.4B.
Fancies: Markets slow. Large 5 ct.-plus fine-quality
goods getting more interest. Ovals and Pears steady. Emeralds selling with
improving large-stone demand. Princess and Hearts slow. Top-quality fine-cut
fancy shapes OK but buyers are extremely picky. Overall fancy shape prices
relatively soft. U.S. demand supporting market for commercial-quality fancies,
especially for sizes under 1 ct. Far East fancy demand weak. Buyers are very
selective and insisting on excellent-shape proportions. Significant price
differentials between excellent- and average-cut fancies. Off-make, poorly-cut
fancies illiquid and very hard to sell, even at very deep discounts.
United
States: Improved
activity during India Week in New YorkDiamond Dealers Club (August 22
to 25). Overall polished market still cautious. Dealers looking for buying opportunities
and better margins shift attention to larger diamonds. Melee weak. Retail
jewelry sales unpredictable. Sentiment weak with regular reports of store
closures and cautious consumer spending. Market expected to improve in
post-election holiday season.
Belgium:
Market slowly opening
up asdealers return from vacation. Trading expected to be stable until
Hong Kong Jewellery and Gem Fair (September 13 to 19). Steady demand for 0.50
to 0.80 ct., D-I, VVS1+ diamonds. Rough trading stable following ALROSA sale
(August 15 to 19) with Russian goods selling at mid-single-digit premiums on
the secondary market.
Israel:
Trading quiet with
the Israel Diamond Exchange closed until August 28.
India: Polished trading improving ahead of
Hong Kong show with dealers focused on VS-SI goods. Steady U.S. and Chinese
demand with a number of foreign buyers in Mumbai looking for bargains. Steady
demand for 1 ct. D-I, SI-I2 diamonds. Fancy shapes improving. Rough demand
stable ahead of next week’s De Beers sight. Manufacturing expected to remain
steady until November Diwali break.
Hong
Kong: Trading
improving after long, slow summer. China and other Asian markets steady. Local
Hong Kong demand slow. Dealers holding large inventory and focused on sourcing
the right goods for the September Hong Kong show. Stable demand for 1 ct., D-I,
SI1-I2. Rising demand for 3 ct. and larger stones, especially fancy shapes.
Chinese retail sector much better than local Hong Kong retail.
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Tags:
Rapaport News
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