Diamond markets quiet and in vacation mode. Polished
inventory levels sufficient to see dealers through the third quarter. Manufacturers
maintaining high production levels with $1.8B of rough sales to India this May.
Cutter profitability a concern during this week’s Alrosa sale. Continued
strength in e-commerce as Amazon’s Prime Day exceeds its Black Friday and Cyber
Monday sales. Graff Diamonds Int’l 2016 sales -10% to $570M, profit -66% to
$16M. Chow Tai Fook 1Q China sales +17%, HK/Macau +7%. Michael Hill FY global sales
+6% to $437M, but US sales weak. Belgium’s June polished exports -12% to $1B,
rough imports +5% to $997M. Tiffany & Co. appoints Alessandro Bogliolo as
CEO.
Fancies: Ovals best-selling fancy shape in US market, with shortage of
3 ct. stones. Cushions gaining popularity. Steady demand for Pears in the Far
East. Emeralds improving and selling better than Princesses in larger 2 ct.+
sizes. Some demand for big fancy shapes such as Radiant, 3 ct.+, D-I, SI1-SI2
elongated stones, but buyers extremely picky. Large price differentials between
excellent- and average-cut fancies. Off-make, poorly cut fancies illiquid and
hard to sell, even at very deep discounts.
United States: Trading quiet with dealers on vacation. Activity expected to
remain slow through July-August summer period. Buyers looking for bargains
during the slow period, but suppliers maintaining firm prices. Retailers
insisting on memo rather than buying. Jewelry sales stable, with seasonal
bridal demand during ongoing wedding period.
Belgium: Sentiment weak, as
trading is expected to remain slow until the bourses close for summer break
(July 31 to August 18). Steady demand for commercial-quality 0.30 to 2 ct., H-J,
SI diamonds. Buyers pushing for higher discounts, with some suppliers accepting
losses to raise liquidity. Good demand for unique fancy colors. Rough trading
stable.
Israel: Market quiet with US
clients on vacation. Trading in 0.30 to 0.49 ct. goods has slowed following a
period of improved Chinese demand in 1H. Stable demand for 1 ct., G-J, VS-SI,
RapSpec A3+ diamonds. Dealers expecting market improvement from September Hong
Kong show. High rough prices limiting manufacturers’ profit.
India: Polished trading slow with US buyers on summer vacation. Weak demand for lower-quality piqué goods, with fewer orders than expected after Las Vegas show. Polished inventories rising as
manufacturers maintain production levels despite sluggish demand. Positive
outlook for local jewelry sales after good start to monsoon season and as large
retailers expect to benefit from tax reforms.
Hong Kong: Dealer market cautious,
with shift to lower price points. Good demand for better-quality SIs and steady
demand for 0.30 to 0.50 ct., F-H, VS-SI, VG+ GIA-graded diamonds. Retailers
more optimistic after 1H increase in tourist arrivals. Brick-and-mortar
jewelers seeing greater competition from online sellers. Jewelers discounting
and raising promotional activity to boost summer sales.
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