Dealers return from spring break
in optimistic mood despite low trading volumes. Steady influx of new polished
production entering the market. Large Indian manufacturers raising production,
while small factories still acclimatizing to demonetization and low levels of
demand. Dealers shifting focus to U.S. ahead of Las Vegas shows. Jewelers
discounting to bring consumers back to stores this Mother’s Day. Luk Fook 4Q
same-store sales +2%, gold -1%, gem-set jewelry +11%. Firm rough premiums on the
dealer market. ALROSA 1Q production +9% to 8.9M cts.,
sales +17% to 14.1M cts. Rio Tinto 1Q production -8% to 4.2M cts. Dubai
2016 rough exports +29% to $9.8B, rough imports +16% to $6.3B.
Fancies: Good demand for Pears in the Far East, with Ovals
overtaking Pears as the strongest shape in the U.S. Shortages of fine-quality
large Pears and Ovals. Cushions stable. Emeralds selling better than
Princesses. Some demand for big fancy shapes, but buyers extremely picky.
Improving demand for Radiant, 3.01 to 9.99 ct., D-I, SI1-SI2 elongated stones.
Large 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: Polished market steady although many businesses
closed last week for the Passover holiday. A lot of goods out on memo. Strong retail
promotional activity ahead of Mother’s Day (May 14). Large department stores
scaling back brick-and-mortar operations, hurt by declining mall traffic and
increased competition from online. General retail sales softened -0.2% in March
first quarter, government data showed.
Belgium: Dealers slowly returned from the long Easter
weekend relatively positive about the market. Trading slow but expected to
improve in the coming weeks as business returns to normal. Rough market steady
during monthly Alrosa sale, with rising premiums for Russian goods on the
secondary market.
Israel: Diamond trading quiet given it was a short week
due to Passover. Dealers focused on US market with rising expectations for
upcoming Las Vegas shows. Steady US demand for 1 ct., G-J, SI-I1 diamonds.
Bourse publishes ethical code of conduct for members.
India: Dealers relatively upbeat despite decline of
foreign buyers during Passover and Easter. Local trading steady with good
demand for dossiers, particularly for 1 ct., J-L, VS-SI diamonds. Some concern
about slower-than-usual US demand ahead of Las Vegas shows. Manufacturers
maintaining steady production, with large factories operating at full capacity.
Demonetization still affecting smaller units, but dealers report improved
liquidity in the market. Rough demand firm.
Hong Kong: Quiet week due to holidays, but polished trading
generally slow compared to busy first-quarter period. Good demand for 0.30 to
0.39 ct., D-H, VVS1-VS2 diamonds and improving demand for better-quality
(RapSpec 2A+) stones above 1 ct. Retail market improving from last year’s low
points, particularly in mainland China. Jewelers optimistic about upcoming May
1 holiday and Mother’s Day.
|
|
|
|
|