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Rapaport Weekly Market Comment
December 8, 2016
Dec 8, 2016 11:00 AM
By Rapaport News
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Polished
market stable during peak jewelry selling season. Small melee significantly
weakened by India’s currency demonetization. Larger stones relatively
unaffected. Nov. RAPI 1 ct. +0.5%, 0.30 ct. +0.5%, 0.50 ct. -1%, 3 ct. +1.2%. Manufacturing
profitability better than last year with De Beers Jan. to Nov. rough price
index -5%. Lukoil to sell Grib mine to Russian Otkritie investment group for
$1.5B. Christie’s NY sells $51M with
rectangular, 51.35 ct., D, VVS1 diamond sold for $5.6M ($108,422/ct.). Belgium
Nov. polished exports -6% to $878M, rough imports +60% to $1.1B. GIA opens synthetic
melee testing service.
Fancies: Fancy-shape market stable with
top-quality, fine-cut Pears and Ovals enjoying holiday demand. Princess, Emeralds
and Cushions slow after steady seasonal orders from large U.S. jewelry chains.
Large sizes getting some interest, but buyers are extremely picky. U.S. demand
supporting market for small-to-medium size, commercial-quality fancies (H-J,
SI2-I2). Far East fancy demand weak. 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: Positive
sentiment due to improved trading during the holiday season. Many inquiries for
memo goods from independent jewelers. Stable demand for 1 ct., H-J, VS-SI,
RapSpec A3+ diamonds. Melee market quiet. Good holiday demand for Pears. Retailers
increasing marketing spend to boost final holiday sales.
Belgium: Steady last-minute orders for
specific goods from U.S. and European independent jewelers. Dealers relatively
satisfied with holiday trading but still cautious about the market. Stable
demand for 0.30 to 1 ct., G-J, VS-SI, RapSpec A3+ diamonds. 3 ct. improving.
Steady demand for good-quality, fancy color diamonds. Rough trading stable with
large sizes stronger than smalls.
Israel: Dealer trading quiet with most
orders complete for the U.S. holiday season. Steady demand for under-the-carat
GIA goods with some weakness and rising inventory for 0.50 to 0.89 ct., D-I,
IF-VVS diamonds. Stable demand for fine-quality pears and ovals, 0.70 to 2 ct.,
F-H, VS-SI’s. Fancy color market positive with strong demand for blues, pinks
and greens. Higher-end fancy yellows weak amid cautious Chinese demand.
India: Dealers trying to normalize
operations after Nov. government demonetization liquidity crisis. Larger
exporters resuming regular activity with full manufacturing capacity after
Diwali break. Smaller dealers and manufacturers adjusting to new currency laws
and lower demand from local jewelers. Steady foreign demand with U.S. and
Israeli dealers looking to fill U.S. orders. Rough trading stable during De
Beers and ALROSA Dec. sales.
Hong
Kong: Dealer
sentiment slightly improved with steady orders for the Chinese New Year season.
Buyers shifting to lower price points with good demand for 0.30 to 1 ct., G-J,
VS-SI diamonds. Retailers under pressure with strong dollar impacting Chinese
tourist spending. Retail slowdown easing with Oct. jewelry, watch and valuable
sales -0.1% vs. -20% for year to date. Jewelers reducing prices and lowering
margins to improve sales.
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Tags:
Rapaport News
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