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Rapaport Weekly Market Comment
Feb 16, 2017 11:00 AM
By Rapaport News
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Sentiment improving with rising expectations for important
Hong Kong show. Suppliers hoping polished prices will catch up to rough,
enabling a return of profits in the diamond manufacturing sector. Steady prices
expected at next week’s De Beers sight. ALROSA CEO urges caution in rough
market and commits to branded marketing with traceability programs. Stable
large-stone and fancy-color diamond demand at International Diamond Week lifts
mood in dealer market. Asian Star 3Q sales +7% to $112M, profit -5% to $2.2M. Botswana
2016 rough diamond exports +54% to $4B with projected economic growth +2.9%. NY
Diamond Dealers Club signs deal to move into IGT building on 47th St.
Fancies: Fancy-shape demand improving slightly
with shortages of fine-quality, large Pears and Ovals. Cushions making
comeback. Emeralds selling better than Princesses. Some demand for big fancy
shapes, but buyers extremely picky. U.S. demand steady, Far East fancy shape
demand 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
trading steady with slight improvement after longer-than-usual post-Christmas
lull. Prices firming with shortage of RapSpec A2+ diamonds. Steady demand for 1
ct., I-F, VS-SI, RapSpec A3+ goods. Ovals hottest fancy shape. Jewelry retail
market stable over Valentine’s Day with consumers shifting to lower price
points. Bridal and engagement rings the strongest segment.
Belgium: Market improved slightly after slow start to the
year. Dealers hoping momentum will build for Hong Kong International Jewellery
Show (Feb. 28). Suppliers holding prices firm for fine-cut RapSpec A2+ diamonds
due to high rough costs. Steady demand for 0.30 to 1 ct., G-J, VS-SI diamonds.
Profit margins tight after Jan. rough price hike. Smaller De Beers sight and
stable prices expected next week.
Israel: Busy International Diamond Week lifts
mood in the bourse. Improved foreign buyer presence from previous years. Steady
local demand for niche items like large stones, fancy shapes and fancy color
diamonds. Good demand for round, 1 to 1.50 ct., F-I, SI2- I1 diamonds. Steady
U.S. demand for Ovals and Pears, 1 to 1.50 ct., F-I, VS-SI2 diamonds. Blues and
pinks strong. Dealers preparing for Hong Kong show.
India: Polished trading improving with
foreign buyers in Mumbai and local dealers gaining confidence. Effect of
demonetization diminishing but concerns remain that small manufacturers in
rural areas are unable to open required bank accounts to resume normal business
activity. Large manufacturers raising polished output to fill shortages of
select categories. Steady Asian demand for GIA dossiers. Good U.S. demand for
piqué (I1 to I3 clarity) diamonds. Rough trading stable ahead of next week’s De
Beers sight.
Hong
Kong: Dealers
returned from the Chinese New Year break and preparing for Hong Kong show.
Steady demand for 1 ct., G-I, VVS-VS, VG+, GIA-graded diamonds and 0.30 to 0.50
ct., D-J, VS2-SI1 goods. Buyers seeing better-quality goods at more attractive
prices in Hong Kong than manufacturing centers. Jewelry wholesale orders
starting to improve with rising consumer demand in mainland China. Hong Kong
retail still cautious with jewelry and luxury sales -17% to $9.2B in 2016.
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Tags:
Rapaport News
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