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Rapaport Weekly Market Comment
January 12, 2017
Jan 12, 2017 11:00 AM
By Rapaport News
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Diamond demand uncertain as U.S. jewelers
report weak holiday sales. Signet disappoints as Nov.-Dec. sales -5% to $1.9B with
fewer transactions, higher average price, and technical glitches on ecommerce
channel. Mall traffic slow with department stores discounting heavily to
attract customers. Macy’s, J.C. Penney jewelry outpaces sluggish overall
performance. Rising expectations for Chinese New Year after Chow Tai Fook 3Q
retail sales +7% in China, -6% in Hong Kong. Steady rough demand expected at
next week’s De Beers sight as manufacturers raise production for 1Q stock
replenishment. ALROSA 2016 sales
+26% to $4.5B. U.S. Nov. polished imports -2% to $1.6B, exports +25% to $1.7B.
Fancies: Fancy-shape demand improving with shortages of fine-quality,
large Pears and Ovals. Cushions making strong comeback. Emeralds better than
Princesses. Some demand for big diamonds, but buyers extremely picky. U.S.
demand steady, Far East weak. 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 stable as dealers return from
Christmas break. Diamond trading expected to improve as jewelers replenish
stock sold during holiday period. Steady demand for 0.75 to 2 ct., F-J, VS2-I2
diamonds. Availability of low-quality diamonds rising due to soft Indian
demand. Better-quality RapSpec A2+ diamonds difficult to find. Curved fancy
shapes better than squares. Large jewelers’ retail sales disappoint.
Belgium: Trading quiet as dealers return from vacation. Cautious mood
after polished prices softened in December and as banks restrict funding to
local traders. Dealers expect lower prices will stimulate demand in the first
quarter. Steady demand for 0.50 to 0.80 ct., G-J, VS-SI RapSpec A3+ diamonds.
Larger stones above 4 ct. weak. Rough trading slow with dealers waiting for
clearer trend during next week’s De Beers sight.
Israel: Sentiment weak with polished trading very slow. Uncertainty
surrounding new tax laws adding to caution. Dealers waiting for U.S. holiday
feedback to assess first-quarter stock requirements. Demand has narrowed with
highly requested goods difficult to find. Suppliers maintaining firm prices
when filling specific orders. Large inventory buyers able to push higher
discounts. Steady demand for 1 ct., D-E, VVS and 1 ct., J-K, VVS-VS1
diamonds.
India: Stable market with steady Far East demand ahead of Chinese
New Year season. U.S. demand slow as buyers return from holiday. Domestic
market still feeling effect of demonetization. Major retailers with organized
credit and electronic payment facilities doing relatively well. Large
manufacturers raising production as U.S. post-holiday orders begin. Small
factories feeling liquidity squeeze remain closed. Steady production of
dossiers and 1 ct., while manufacturing of small goods is slow.
Hong Kong: Diamond trading slow with manufacturers and
wholesalers closing for Chinese New Year holiday. Retail sentiment improving
ahead of the Jan. 28 festival with growth in mainland China expected from last
year’s low base. Jewelers making final purchases for the season with steady
demand for 0.30 to 0.70 ct., E-J, VVS-SI RapSpec A2+ diamonds. Strong dollar
adding to caution in Hong Kong.
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Tags:
Rapaport News
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