|
|
Rapaport TradeWire May 12, 2016
May 12, 2016 6:00 PM
By Rapaport
|
|
|
|
|
|
|
|
|
| |
|
|
| |
| |
|
Rapaport Weekly Market Comment
May 12, 2016
|
|
|
Market sentiment improving despite lackluster May
trading. Polished inventory rising as new production comes on stream. Rough
trading slow with reduced supply reported at ALROSA sale, while sightholders
anticipate stable prices at next week’s De Beers sight. Lucara sells 813 ct.
rough diamond for $63M ($77,649/ct.). Sarine 1Q revenue +27% to $16M,
profit triples to $3M. Titan Company FY sales -5% to $1.7B, profit -16% to
$104M. Blue Nile 1Q sales -3% to $103M, profit -9% to $1M. U.S. March polished
imports -5% to $2B, polished exports -15% to $1.5B. Belgium April polished
exports -14% to $899M, rough imports +34% to $1.2B.
|
|
| Diamonds |
1,179,664 |
| Value |
$8,093,700,251 |
| Carats |
1,283,305 |
| Average Discount |
-28.57% |
www.rapnet.com
|
 |
| The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network. |
|
|
|
|
Get Current Price List | Subscribe to Rapaport | Join RapNet |
|
| |
QUOTE OF THE WEEK
The strength of the company’s brands was tested in an environment of subdued sales across all retail formats. Weak consumer sentiment had an impact on retail sales across all businesses.
S. Ravi Kant, executive vice-president for corporate communications at Titan Company, on the India-based jeweler’s decline in annual revenue and profit
|
|
|
|
MARKETS
|
|
|
|
|
| |
United States: The market remains quiet. Cautious expectations for
2H due to restrained consumer spending and uncertainty caused by the upcoming
election…
Belgium: Polished trading stable with dealers concerned
about lagging consumer demand. Polished supply rising but demand is selective…
Israel: Polished trading steady but activity declines as
bourse closes for Memorial Day and Independence Day.Sentiment improving
as dealers prepare for Las Vegas shows…
India: Market slow with some dealers taking vacation
during ongoing school holiday. Dealers focused on filling U.S. orders with
rising expectations for Las Vegas shows…
Hong Kong: Weak consumer sentiment impacting jewelry sales. Jewelry
retailers relying on steady sales in Mainland China to compensate for sluggish
Hong Kong market...
Click here for deeper analysis
|
|
|
|
INSIGHTS
|
|
|
|
|
| |
Lucara’s Diamond Sale of a Lifetime
In a
somewhat understated announcement this week, Lucara Diamond Corporation
unveiled the most expensive rough diamond ever sold. Under normal
circumstances, Lucara would be making a bigger brouhaha about the sale. But the
company, along with the diamond and investment communities, knows this was a
mere curtain raiser...
Click here to continue reading
|
|
|
|
INDUSTRY
|
|
|
|
|
| |
Rapaport Group Appoints John Costello Publisher
The
Rapaport Group has appointed John Costello as Publisher, heading the company’s
Information Services Division. His responsibilities include the management and
development of all content creation and distribution through Rapaport’s print
and digital channels. He will also drive and manage product development, and
spearhead the company’s digital strategy.
Prior to joining Rapaport, Costello ran his
own content consulting business, where he worked with trade magazines, national
newspapers and blue chip companies. Based
in Rapaport’s office in Ramat Gan, Israel, he will also oversee the company’s
New York publishing division, which publishes the Rapaport Magazine.
|
| |
Manufacturing Revival Lifts Sarine Sales
Sarine Technologies' revenue jumped 27% to $15.5
million in the first quarter driven by a recovery in the diamond manufacturing
sector. Profit more than tripled to $3 million as the sales increase outpaced
modestly higher expenses incurred by the supplier of equipment used in diamond manufacturing.
Increased manufacturing activity and renewed investment in
equipment drove sales after manufacturers drastically reduced polished
production in 2015. Sarine’s revenue slumped 45% and profit plunged 87% last
year.
|
| |
Swiss Jeweler Buys Rights to 404ct. Diamond
De Grisogono, a Swiss jeweler, acquired the rights to market
a 404-carat rough diamond from Dubai-based trader Nemesis International,
Bloomberg reported.
The stone was discovered at Lucapa Diamond
Company’s Lulo mine in Angola, Nickolas Polak, a director of Nemesis said in
the report. Lucapa sold a 404-carat diamond for $16 million (AUD 22.5 million) in
February with Nemesis thought to be the buyer. Polak declined to disclose details
of the sale to De Grisogono.
|
| |
Belgium’s April Rough Trading Climbs
The Antwerp World Diamond
Centre (AWDC) said a surge in rough trading in Belgium in April warranted
cautious optimism about the health of the diamond market.
Imports
of rough diamonds soared 34% to $1.22 billion, while rough exports
surged 30% to $1.27 billion.
Results
over the past few months “are certainly cause for optimism,” according to AWDC
spokesperson Margaux Donckier, but the Belgian industry is “not jumping to the
conclusion that a full-blown diamond-industry recovery is underway.”
|
| |
KP, OECD to Co-Host Rough Valuation Forum
De Beers and ALROSA will take part in a forum this month aimed
at reaching a consensus on universal rough diamond valuation and pricing.
The May 23 event, hosted by the Kimberley
Process (KP) and the Organisation for Economic Co-operation and Development
(OECD), will engage companies, governments and non-profits in the discussion.
The organizers expect to improve the understanding of rough valuation, the office
of the KP chair said.
|
| |
U.S. Polished Imports -5% in March
U.S. polished diamond imports declined 5.3% year on year in
March as a drop in average price per carat outweighed flat volume. Shipments
into the U.S. fell to $2.04 billion as the average price decreased 5.3% to
$1,895 per carat. Polished diamond exports slumped 15% to $1.48 billion,
driving net imports up 33% to $559 million.
In the first three months of
the year, polished imports fell 3% to $5.56 billion and polished exports fell
4% to $4.7 billion.
|
|
|
|
RETAIL & WHOLESALE
|
|
|
|
|
| |
Titan Sales Hit by Indian Jewelers’ Strike
Titan Company blamed weak consumer sentiment and an Indian jewelers’ strike for a drop in
annual sales and profit. Revenue fell 5.3% to $1.69 billion (INR 112.8 billion)
in the fiscal year that ended March 31, while net profit slumped 16% to $103.5
million.
Titan also said it will pursue the acquisition of a majority
stake in Carat Lane Trading, a startup online jewelry retailer. A deal is still
in negotiations.
|
| |
Pandora Raises Expectations after Strong 1Q
Pandora increased its revenue guidance for the year as sales
surged in the first quarter due to strength in Europe and Asia Pacific. Revenue jumped 34% to $724.7 million (DKK
4.74 billion) and profit more than tripled to $199.7 million in the
three months to March 31.
Pandora raised its revenue forecast for 2016 to more than $3.06 billion, which would be an advance of at least 19% from last
year. Its previous guidance was for sales to exceed $2.9 billion.
|
| |
Frederick Goldman Ties Up with Karl Lagerfeld
Karl Lagerfeld has struck a deal with jewelry manufacturer
Frederick Goldman to bring the German fashion house’s jewelry to the U.S. and
other major markets.
Under the licensing agreement, Frederick Goldman
will produce and distribute Karl Lagerfeld-branded engagement and wedding band
collections in the U.S., Canada, Australia and the U.K. The first collection
will launch in the fall of 2016, featuring precious metals and diamonds.
|
| |
Sotheby’s Swings to 1Q Loss
Sotheby’s revenue in the first quarter slumped from
a high base last year. Total sales nosedived 32% to $106.5 million and the
company swung to a $25.9 million loss from a profit of $5.2 million a year
earlier.
Record art sales in January through March 2015 led to an
“atypically profitable” comparable quarter, Sotheby’s said. The company didn’t disclose separate jewelry
sales.
|
|
|
|
MINING
|
|
|
|
|
| |
Lucara Sells 813ct. Stone for Record Price
Lucara Diamond Corp. broke a world record for the sale of a
rough diamond as an 812.77-carat stone from its Karowe mine in Botswana fetched
$63.1 million.
Dubai-based Nemesis International paid $77,649
per carat for the rights to 90% of the diamond, named ‘The Constellation.’
Lucara will retain a 10% interest in the net profit received from the sale of
the resultant polished diamonds. Lucara
discovered the diamond in November alongside a 1,109-carat gem later labelled
the Lesedi La Rona.
|
| |
Lesedi La Rona Weighed 1,500cts. Before Breakage
Lucara Diamond Corp.’s 1,109-carat diamond originally weighed
about 1,500 carats before it broke into two pieces. A 374-carat stone that Lucara
recovered a day after it found the Lesedi La Rona was actually a part of the
latter, William Lamb, Lucara’s chief executive officer, told investors.
“So we were looking at something which is most
probably closer to 1,500 carats,” Lamb said, adding that it was impossible to
tell how it broke.
|
|
|
|
GENERAL
|
|
|
|
|
| |
Israel Bourse Unveils Expansion Plans
The Israel Diamond Exchange (IDE) is seeking building rights
to expand the bourse complex by creating an additional office tower or adding
floors to existing buildings.
IDE management signed an agreement with Yashar
Architects who will plan the new site in the coming years, according to a post
on the bourse’s website.
|
| |
Fiera di Vicenza, Rimini Fiera in Merger Talks
Fiera di Vicenza, which manages and oversees the VicenzaOro
jewelry shows, is in merger talks with specialist trade-fair organizer Rimini
Fiera.
The aim of the deal is to set up a national
trade-show organizer in Italy, which will subsequently be listed on the stock
market, the companies said.
|
|
|
|
ECONWATCH
|
|
|
|
|
| |
Diamond Industry Stock Report
Lucara Diamond (+14%) led mining stocks on news of a record sale of a rough diamond and growing buzz around next month's auction of its Lesedi La Rona. In the U.S., Sotheby's (+6%) headed the increases but most retailers were stable or declined, the heaviest drop being JCPenney (-10%). Indian stocks were mixed, while Singapore-listed Sarine (+3.9%) rose on improved 1Q results.
View the detailed industry stock report.
| |
May 11 (8:35 GMT) |
May 5 (12:40 GMT) |
Chng. |
|
| $1 = Euro |
0.88 |
0.87 |
0.00 |
|
| $1 = Rupee |
66.69 |
66.56 |
0.13 |
|
| $1 = Israel Shekel |
3.77 |
3.78 |
-0.01 |
|
| $1 = Rand |
15.28 |
14.97 |
0.31 |
|
| $1 = Canadian Dollar |
1.29 |
1.28 |
0.01 |
|
| |
|
|
|
|
| Precious Metals |
|
|
|
Chng. |
| Gold |
$1,272.46 |
$1,277.28 |
-$4.82 |
-0.4% |
| Platinum |
$1,061.83 |
$1,054.25 |
$7.58 |
0.7% |
| Silver |
$17.30 |
$17.38 |
-$0.08 |
-0.5% |
| |
|
|
|
|
| Stock Indexes |
|
|
|
Chng. |
| BSE |
25,616.18 |
25,262.21 |
353.97 |
1.4% |
| Dow Jones |
17,928.35 |
17,651.26 |
277.09 |
1.6% |
| FTSE |
6,138.56 |
6,111.90 |
26.66 |
0.4% |
| Hang Seng |
20,055.29 |
20,449.82 |
-394.53 |
-1.9% |
| S&P 500 |
2,084.39 |
2,051.12 |
33.27 |
1.6% |
| Yahoo! Jewelry |
1,087.12 |
1,062.09 |
25.03 |
2.4% |
|
|
|
|
|
|
|
INDIA MARKET REPORT
|
|
|
|
|
| |
Polished Trading Activity
Market slow with some dealers taking vacation
during ongoing school holiday. Dealers focused on filling U.S. orders with
rising expectations for Las Vegas shows. Asia Pacific demand cautious. Domestic
Indian demand improving. Good demand for dossiers, particularly 0.30 to 1 ct.,
G-J, VS-SI, RapSpec A2 diamonds. Inventory levels rising as new polished
production becomes available. Manufacturing steady. Rough demand slower during
this week’s ALROSA sale.
Read the Polished Diamond Trading Report
|
|
|
Advertisements
|
|
|
Advertisements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|