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Rapaport Weekly Market Comment
May 19, 2016
May 19, 2016 8:07 AM
By Rapaport News
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Rounds: World Diamond Congress focuses on
transparency, responsibility, sustainability with discussions about financing
and regulatory requirements for compliance auditing. 2016 looking better than
2015 but demand still sluggish. Mixed expectations for Las Vegas shows with
U.S. consumers cautious in election year. Steady rough demand and stable prices
at De Beers sight. Namibia signs 10-year supply deal with De Beers. Chow Tai
Fook warns 1Q profit down 40-50%. Sotheby’s Geneva sells $175M (83% by lot)
with pear-shape, 15.38 ct., fancy vivid pink, VVS2 diamond fetching $31M
($2.1M/ct.). Christie’s Geneva sells $149M with rectangle, 14.62 ct., vivid
blue, VVS1 ‘Oppenheimer Blue’ selling for $57.5M ($3.9M/ct.). WFDB adds GJEPC
as member, re-elects Ernie Blom president. Ronnie Vanderlinden elected IDMA
president.
Fancies: Ovals doing well and cushions have
cooled off. Emeralds selling. Princess and Hearts slow. Top quality fine-cut
fancy shapes OK but buyers are extremely picky. Overall fancy shape prices
relatively soft. U.S. demand supporting market for commercial-quality fancies,
especially for sizes under 1 ct. Far East fancy demand weak. Buyers are very
selective and insisting on excellent-shape proportions. 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: Sentiment is
weak as New York trading slows. Dealers concerned about profitability as demand
softened in the past month, particularly for 3 to 4 ct. diamonds. Steady demand
for 1 to 2 ct., G-I, VS-SI goods. Suppliers focused on preparing the right
inventory for JCK Las Vegas show (June 3-6). Retail sentiment weaker after
department stores reported weak 1Q sales. Jewelers sustained by engagement and
bridal sales.
Belgium: Steady business despite slower buyer
traffic in Antwerp. Dossiers selling well with good demand for 0.30 to 1.25
ct., D-J, VS2-SI1, 3X diamonds. 3 to 5 ct. relatively weak with improving
demand for commercial-quality H-J, SI goods. Fancy shapes mixed with good
demand for ovals and better-quality pears. Squares on edge. Rough trading
stable during sight week.
Israel: Polished trading seasonally quiet.
Large delegation traveling to Las Vegas with mixed expectations for JCK show.
Liquidity squeezed with suppliers cautious to give clients credit while bank
lending is tight. A lot of goods sold on memo. Steady demand for 0.30 to 1.99
ct., D-I, VS-SI, 3X diamonds. 5 ct.-plus improving in lower qualities. Rough trading
stable with large-stone manufacturers eyeing prices at next week’s
International Rough Diamond Week in Ramat Gan.
India: Stable market but trading relatively
quiet during summer holiday period. Steady U.S. and Far East demand. Dealers
looking for goods ahead of Las Vegas shows and expect trading to improve in
June. Domestic demand sluggish with relatively weak sales during Akshaya
Tritiya gold buying season. Manufacturing levels stable. Rough trading steady
with sightholders reporting good value in De Beers boxes during sight week.
Hong
Kong: Polished
trading slowed from previous weeks. Steady demand from China with steady
inquiries for 1 to 2 ct., D-J, VS-SI RapSpec A2 diamonds. 3 to 5 ct. slow. Weak
consumer sentiment and decline in tourist arrivals impacting jewelry retail
sales. Higher gold prices also discouraging jewelry purchases.
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Tags:
Rapaport News
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