High hopes for next week’s Hong Kong show after China jewelry
sales improved during the Chinese New Year. Polished prices steady as suppliers
await outcome of the show and defend high rough prices. Manufacturing rising with
steady rough demand during sight week. De Beers 2016 earnings +159% to $667M,
revenue +30% to $6.1B, to raise 2017 production from 27M to 31-33M cts. Lucara 2016
sales +32% to $296M, profit -9% to $71M. Petra Diamonds 1H revenue +48% to
$229M, profit of $35M vs. $2M previous year. Dominion 2016 sales -21% to $571M,
Ekati production +40% to 5.2M cts. India Jan. polished exports +3% to $1.6B,
rough imports +28% to $1.3B. ALROSA CEO Andrey Zharkov to step down.
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
market stable with buyers looking for deals and pushing for higher discounts. Steady
demand for 1 to 2.99 ct., D-J, VS1-SI1 diamonds. Rising interest in fancy color
diamonds and color gemstones. Ovals, Cushions and Emeralds the strongest fancy
shapes. Jewelry retail sales expected to slow until start of summer wedding
period.
Belgium:
Sentiment weak as
trading slowed in February. Difficult to find the right goods at the right
price. Dealers shifting from 3X to 3VG to meet lower price-point demand. Steady
demand for nice-make GIA dossiers (RapSpec A2+). Fancy blue and pink diamonds
strong. Selective demand for fancy shapes with Hearts improving. Rough trading
stable during De Beers sight.
Israel:
Trading slowed after
busy International Diamond Week. Rising expectations for Hong Kong show (Feb.
28 to Mar. 4) with large delegation of 83 exhibitors in Israel pavilion. Buying
reserved ahead of the show as dealers have enough inventory to sell at the event.
Steady demand for 1 to 3 ct., G-J, VS-SI diamonds.
India: Trading cautious with foreign buyers
looking for bargains and dealers waiting for better prices at the Hong Kong show.
Domestic demand quiet with small independent retailers still acclimatizing to
new demonetization rules. Steady demand for 1 ct., G-J, VS-SI diamonds.
Manufacturing back to normal levels with shortage of small Indian rough during
sight week.
Hong
Kong: Positive
sentiment as trading improves ahead of the show. Buyers looking for goods as
they expect suppliers to hold prices firm during the show in order to cover
exhibition expenses. Steady demand for 0.30 to 0.70 ct., D-J, VVS2-SI1, RapSpec
A2+ diamonds and for 1 ct., G-H, VS-SI, VG+ diamonds. Improving demand for 1 to
2 ct., fancy yellow, VS-SI diamonds. Steady engagement ring and bridal demand in
mainland China. |
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