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Rapaport TradeWire October 6, 2016
Oct 6, 2016 6:00 PM
By Rapaport
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Rapaport Weekly Market Comment
October 6, 2016
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Diamond trading slow over Jewish New Year and
China National Day holiday. Chinese demand improving with Sept. gold, silver
and jewelry sales +11%. Dealers focused on filling U.S. Christmas orders.
Polished prices stable with Sept. RAPI 1 ct. -0.2%, 0.30 ct. +0.3%, 0.50 ct.
-0.2%, 3 ct. -0.2%. Polished
market squeezed by relatively high rough prices with suppliers preferring to
delay sales rather than suffer losses from expensive rough. Rough prices firm
as De Beers reports better-than-expected $485M Oct. sales. De Beers, GJEPC to
launch generic marketing campaign on Oct. 10 for India Diwali season. Rapaport offices will be closed on
Wednesday (Oct. 12) due to Yom Kippur.
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| Diamonds |
1,256,944 |
| Value |
$7,886,363,289 |
| Carats |
1,326,300 |
| Average Discount |
-30.72% |
www.rapnet.com
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| The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network. |
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Get Current Price List | Subscribe to Rapaport | Join RapNet |
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QUOTE OF THE WEEK
We expect to bring back the excitement to the category and increase consumer awareness about diamonds and prices.
Praveenshankar Pandya, chairman of India's GJEPC, on its new generic marketing campaign with De Beers
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MARKETS
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United
States: Polished trading slow
with many businesses closed during Jewish New Year. Dealers focused on filling
holiday demand with retail inventories in line with last year…
Belgium:
Market quiet with many
businesses closed over Jewish New Year. Positive sentiment continues although
dealers cautious about U.S. and European holiday demand…
Israel:
Bourse closed for three
days during Jewish New Year. Dealers focused on filling U.S. holiday orders
with good demand for 0.30 to 0.89 ct., D-I, VS-SI2 and 1 to 2 ct., D-I, VS-SI2 diamonds…
India: Polished trading stable
with steady U.S. and Chinese demand. Melee improving with very small -2 melee
still weak…
Hong
Kong: Dealer trading slow with
wholesale Chinese businesses closed for week of Oct 1. National Day holiday…
Click here for deeper analysis
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RAPAPORT STATEMENT
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Diamond Prices Stable in September
Diamond markets were steady in September. Sentiment
improved as trading at the Hong Kong show was better than expected even though
buyers refrained from large inventory purchases. The polished market was
supported by relatively high rough prices as suppliers held polished prices
firm, preferring to delay sales rather than suffer losses from expensive rough.
The RapNet Diamond Index (RAPI™) for one-carat, GIA-graded polished diamonds
declined 0.2% in September. The index dropped 2.7% in the third quarter and is
down 2% since the beginning of the year.
Purchase
the full Rapaport Monthly Report – October 2016
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INDUSTRY
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Indian Generic Marketing Campaign to Launch
De Beers and the Gem & Jewellery Export Promotion
Council unveiled a generic marketing campaign to promote diamonds and diamond
jewelry in India. The program will launch October 10 ahead of the key holiday
selling season, targeting women from 25 to 35 with a “hectic lifestyle and
craving for romance and pampering,” the GJEPC said. It will initially run for
three months on television, print and digital media.
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Antwerp Steps Up Battle with Synthetics
Belgium’s diamond industry leaders
pledged actively to enforce guidelines set out by the World
Federation of Diamond Bourses to combat undisclosed synthetics. Antwerp’s four
exchanges will be among the first to implement the instructions from January 1.
These include an obligation to provide a clear description of goods on invoices
and memo documents. In addition, HRD Antwerp’s M-Screen device for
screening melee will be available for free at the bourses.
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RETAIL & WHOLESALE
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Costco Told to Pay $13.75M to Tiffany
Costco Wholesale was ordered to pay $13.75 million in
damages to Tiffany & Co. after selling counterfeit diamond engagement rings
bearing the jeweler's name. A Manhattan jury awarded Tiffany $5.5 million compensation and a further $8.25 million in
punitive damages. The trial was aimed at determining how much Costco is
liable for damages after a court last year ruled Costco had willfully infringed
Tiffany’s trademark by selling rings with its iconic name.
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Top Lot Fails to Sell Again at Sotheby’s
A jadeite bangle estimated at up to $9 million (HKD 70 million) did not find a buyer at a Sotheby's auction in Hong Kong. The piece was the most expensive item at the sale. Two weeks earlier, the headline lot at the company's New York auction met the same fate when an oval, 27.35-carat, D-color, VS2-clarity diamond and platinum ring failed to hit its reserve price.
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Boehmer et Bassenge Boutique to Debut at Christie's
Jewelry designed by Boehmer et Bassenge’s new boutique Maison de Haute Joaillerie will co-lead a Christie’s Magnificent Jewels auction in Geneva on November 15. The top lot is a pair of diamond earrings estimated to fetch $20 million to $30 million. They feature the world’s largest pair of pear-shaped, D-color, flawless diamonds with a symmetrical cut and weigh 52.55 carats and 50.47 carats. At the same auction, Christie’s will offer a pear-shaped, 9.14-carat, fancy vivid pink diamond estimated at $16 million to $18 million.
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MINING
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De Beers Sales Beat Expectations
De Beers sold $485 million of rough diamonds in its
eighth sales cycle of the year, exceeding expectations in a seasonally quiet
period ahead of the Diwali holiday in India. While the figure for September is
still the lowest for this year, sales soared 57 percent from a year ago when
demand hit rock-bottom levels. Sales in the 7th cycle were restated at $639
million. The Diwali vacation in India from October 30 means demand for
inventory is lower as manufacturers hold on to fewer goods during the period.
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ALROSA’s Monthly Rough Sales Rise to $435M
ALROSA’s rough diamond sales increased to $435.1 million in
September amid stronger demand and mirroring results from rival miner De Beers.
Polished sales stood at $18.9 million, taking group sales to $454
million. Demand was good in almost all categories of rough, ALROSA’s
vice-president Yury Okoemov said.
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Lucara Sets Diamond Tender for November
Lucara Diamond Corp. will hold its second “exceptional”
stone tender of 2016 from November 7 to 16, featuring at least 12 diamonds with
a combined weight of about 1,100 carats. Lucara, which discovered the
1,109-carat Lesedi La Rona last November, also completed the first stage of
modifications to its processing plant as part of the upgrade to its Large
Diamond Recovery system. This will enable the company to find more thousand-carat
diamonds, it said.
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ECONWATCH
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Diamond Industry Stock Report
Retail stocks were mainly stronger this week, led by Signet (+8.7%) in a week that saw it close a $625 million investment from private equity group Leonard Green & Partners. European share prices were solid, while Hong Kong-based Chow Sang Sang (+5.3%) gained in contrast to otherwise lower industry stocks in the Far East. Petra Diamonds (+7.3%) led mixed mining stocks.
View the detailed industry stock report
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Oct 6 (12:25 GMT) |
Sep 29 (12:54 GMT) |
Chng. |
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| $1 = Euro |
0.89 |
0.89 |
0.00 |
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| $1 = Rupee |
66.75 |
66.90 |
-0.15 |
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| $1 = Israel Shekel |
3.78 |
3.76 |
0.03 |
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| $1 = Rand |
13.83 |
13.80 |
0.02 |
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| $1 = Canadian Dollar |
1.32 |
1.31 |
0.01 |
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| Precious Metals |
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Chng. |
| Gold |
$1,261.95 |
$1,318.62 |
-$56.67 |
-4.3% |
| Platinum |
$969.75 |
$1,025.10 |
-$55.35 |
-5.4% |
| Silver |
$17.56 |
$19.04 |
-$1.48 |
-7.8% |
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| Stock Indexes |
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Chng. |
| BSE |
28,106.21 |
27,827.53 |
278.68 |
1.0% |
| Dow Jones |
18,281.03 |
18,339.24 |
-58.21 |
-0.3% |
| FTSE |
7,031.56 |
6,921.10 |
110.46 |
1.6% |
| Hang Seng |
23,952.50 |
23,739.47 |
213.03 |
0.9% |
| S&P 500 |
2,159.73 |
2,171.37 |
-11.64 |
-0.5% |
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INDIA MARKET REPORT
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Polished Trading Activity
Polished trading stable
with steady U.S. and Chinese demand. Melee improving with very small -2 melee
still weak. Dossiers steady but manufacturing profits tight after rough prices
firmed. Rough trading slowed after De Beers sight as manufacturing tapers off
before Diwali break (Oct 30). Retailers hoping marketing campaign will boost
sales ahead of Diwali.
Read the Polished Diamond Trading Report |
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