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Rapaport TradeWire September 8, 2016
Sep 8, 2016 6:00 PM
By Rapaport
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Rapaport Weekly Market Comment
September 8, 2016
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All eyes on Hong Kong as industry focuses on important Far East
show. Sentiment in cutting centers is positive with improved dealer trading but
show expectations are mixed and uncertain. Polished prices stable in
anticipation of the show with Aug. 1 ct. RAPI -0.8%, 0.30 ct. flat, 0.50 ct. +0.2%,
3 ct. +0.2%. Profitability under pressure as rough premiums firmed after $630M
De Beers sale as cutters increase production before Diwali. Belgium Aug.
polished exports +17% to $399M, rough imports +9% to $659M. U.S. July polished
imports -20% to $1.8B, polished exports -2% to $1.4B. HRD Antwerp fires three employees,
bans client after uncovering grading discrepancies at Mumbai lab.
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| Diamonds |
1,231,395 |
| Value |
$7,943,779,151 |
| Carats |
1,336,749 |
| Average Discount |
-30.21% |
www.rapnet.com
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| 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. |
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Get Current Price List | Subscribe to Rapaport | Join RapNet |
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QUOTE OF THE WEEK
In order to sell diamonds and diamond jewelry successfully, one needs to tell the diamond's story.
Christopher Zoettl, general manager of Germany's Designer Diamonds
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MARKETS
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United
States: Polished trading
improved slightly with dealers preparing holiday inventory. Profitability
squeezed after long period of sustained price declines…
Belgium:
Sentiment improving head
of Hong Kong show. Steady Far East demand for 0.30 to 0.50 ct., D-H, VS-SI
goods. U.S. and European buyers cautious…
Israel:
Positive mood with good
activity at monthly Blue & White Fair. Dealers looking at wider variety of
diamonds to fill existing orders…
India:
Dealers focused on Hong
Kong show hoping stronger trading will raise liquidity. Large volumes expected on
display at the show…
Hong
Kong: Trading slowed slightly with
buyers waiting for next week’s show. Sentiment cautious as local jewelry
retail remains slow and large-scale buyers already holding a lot of inventory…
Click here for deeper analysis
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RAPAPORT STATEMENT
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Diamond Prices Mixed in Slow August Trading
One-carat
diamond prices remain under pressure with low trading volume during the August
vacation period. Polished inventory is increasing with steady manufacturing and
sluggish demand as dealers prepare for the fourth-quarter holiday season. Some
improvement in under-the-carat goods as Chinese bridal demand stabilizes. The
RapNet Diamond Index (RAPI™) for 1-carat diamonds fell 0.8% in
August, while other sizes were relatively stable.
Purchase
the full Rapaport Monthly Report – September 2016
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INDUSTRY
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HRD Uncovers Tampered Diamond Grading Reports
HRD
Antwerp has invalidated 156 diamond grading certificates and fired three
employees who accepted a financial incentive for tampering with the reports at
its Mumbai laboratory. A small Mumbai-based trading firm attempted to improve
the grade of diamonds it submitted to the laboratory by enticing three
employees, who admitted to their actions and were subsequently dismissed.
The trader has been banned from working with the grading company in
future.
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DPA Appoints New Marketing Guru
The
Diamond Producers Association (DPA) named Deborah Marquardt as chief marketing
officer. Marquardt (pictured) was most recently vice-president
and general manager of Time Inc.’s Style Network. She will lead the DPA's activities
in the U.S. and report to Jean-Marc Lieberherr, its chief executive officer.
The DPA will launch its inaugural diamond-marketing campaign this fall,
focusing on digital and social media.
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U.S. Polished Diamond Imports Slide
U.S.
polished diamond imports slumped 20% to $1.76 billion in July, its lowest level
for the month since 2012. Polished exports slipped 1.5% to $1.38 billion,
driving down net imports 52% to $372 million. Rough diamond imports jumped 79%
to $59 million, while rough exports grew to $24 million from $9 million a year
ago. Net rough imports rose 50% to $36 million. The net diamond account,
reflecting the difference between net imports and exports, dropped 49% to $407
million.
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Belgium's Rough Trade Continues to Rise
Belgium’s
rough diamond exports leapt 23% year on year to $530.6 million and imports
jumped 9% to $659.2 million in a seasonally subdued August. Polished exports
grew 17% to $398.6 million but inbound orders fell 7% to $648.2 million. The
country’s net diamond account was negative $378.2 million, meaning more
diamonds were brought into Belgium than shipped out during the month.
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RETAIL & WHOLESALE
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Blue Nile to Open Webroom in Seattle
Blue
Nile will open a ‘webroom’ at the Bellevue Square shopping mall near its Seattle
headquarters. The outlet, which is the online retailer’s fifth physical store, allows
customers to see engagement rings
on-site before buying them online. Prices are
40% lower than those at traditional jewelers, the company said. Blue Nile
could open between 25 and 50 webrooms, CEO Harvey Kanter said.
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Boodles Joins List of Trusted Argyle Jewelers
Rio
Tinto named U.K.-based jeweler Boodles as a ‘select atelier’ for its Argyle
pink diamonds, granting it the right to sell jewelry set with stones from the mine.
Select ateliers are Rio Tinto’s trusted retail partners for Argyle pink
diamonds not sold through its main annual tender. Boodles’ official
launch as a select atelier will take place in October when Rio Tinto showcases the
2016 Argyle Pink Diamonds Tender in London for the first time in four years.
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WDM Approves First European Retailer
Germany’s
Designer Diamonds became the first retail jeweler in Europe to join the World
Diamond Mark (WDM) Authorised Diamond Dealer program. The company specializes
in engagement and wedding rings, operating a store at its headquarters in
Munich and two in Augsburg. WDM membership will help the company achieve higher
and more profitable sales, said Christopher Zoettl, the retailer’s general
manager (pictured).
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MINING
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De Beers Sales Rise Ahead of Holiday Season
De
Beers sold $630 million of rough during its seventh sales cycle this year amid improved demand with diamond cutters requiring stock for the forthcoming holiday
season. Sales grew from a year ago when the market slumped and the August 2015 De
Beers sight was valued at $358 million, according to Rapaport News estimates. This
year’s published figure includes the latest De Beers sight as well as auction
sales and supply to beneficiation and government partners.
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Lucapa Achieves $1,212/ct from Lulo Sale
Lucapa
Diamond Company sold $4.4 million (AUD 5.8 million) of rough from its Lulo mine
in Angola at an average price of $1,212 per carat. The parcel of 3,642 carats
included a 28.5-carat light pink diamond – the largest and most valuable
colored diamond sold from the mine to date. Also contained in the batch were a
49.8-carat, type-IIa white diamond and two light fancy yellows weighing 11.9
carats and 10.9 carats.
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KP Plans Rough Valuation Forum in Antwerp
The
Kimberley Process (KP) and the Antwerp World Diamond Centre (AWDC) will hold
the second forum on rough diamond valuation in Antwerp on September 30. The
one-day event at the Hylitt Hotel will delve into valuation practices deployed
by the global diamond industry, with the aim of developing a more formalized
approach. Better awareness and conformity on rough valuations will help
producing countries get more value from their mineral resources, the KP
said.
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GENERAL
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New Jewelry Fair to Open in Hong Kong
The International
Gem & Jewellery Festival (IGJF) will launch next week in Hong Kong, going
head-to-head with the more established Hong Kong Jewellery & Gem Fair.
Running from September 13 to 18 at the Central Harbourfront Event Space, the
new show will feature more than 230 suppliers from around the world. The main
Hong Kong Jewellery & Gem Fair will run from September 13 to 17 at
AsiaWorld-Expo and from September 15 to 19 at the Hong Kong Convention & Exhibition Centre.
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JCK Shifts 2017 Vegas Show Days
Next
year’s LUXURY and JCK Las Vegas jewelry shows will take place on different days
of the week from previous years to accommodate those observing the Jewish
holiday of Shavuot. LUXURY, an exhibition for invited retailers, will run from
Friday, June 2 to Sunday, June 4. JCK Las Vegas, the broader jewelry fair, is
scheduled from Monday, June 5 to Thursday, June 8.
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Brides Uninspired by Emerald-Cut Diamonds
Emerald-shape
diamonds have limited popularity among people seeking an engagement ring,
according to a survey by The Wedding Report. Some 38.3% of respondents
would avoid the style, revealed the poll which encompassed couples visiting
costofwedding.com from July 1 to 20 and those responding to an email
questionnaire. In contrast, 26.7% said they “love” the emerald cut whereas 5.8% said
it would be too hard to pair it with a wedding band.
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ECONWATCH
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Diamond Industry Stock Report
Mining stocks were generally positive this past week after De Beers reported promising rough sales ahead of the holiday season. Its parent company, Anglo American (+10%), was among the sharp rises, which were led overall by Lucara (+13%). However, True North Gems (-92%) slid from an already low base amid news its Greenland subsidary filed for voluntary bankruptcy. Strong Chinese import data boosted regional stocks, with Chow Tai Fook (+8.6%) and Luk Fook (+7.7%) both gaining.
View the detailed industry stock report
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Sep 8 (10:50 GMT) |
Sep 1 (11:08 GMT) |
Chng. |
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| $1 = Euro |
0.89 |
0.90 |
-0.01 |
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| $1 = Rupee |
66.42 |
66.99 |
-0.57 |
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| $1 = Israel Shekel |
3.75 |
3.78 |
-0.03 |
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| $1 = Rand |
13.88 |
14.66 |
-0.79 |
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| $1 = Canadian Dollar |
1.29 |
1.31 |
-0.02 |
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| Precious Metals |
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Chng. |
| Gold |
$1,347.40 |
$1,306.95 |
$40.45 |
3.1% |
| Platinum |
$1,095.75 |
$1,054.75 |
$41.00 |
3.9% |
| Silver |
$19.91 |
$18.67 |
$1.24 |
6.6% |
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| Stock Indexes |
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Chng. |
| BSE |
29,045.28 |
28,423.48 |
621.80 |
2.2% |
| Dow Jones |
18,526.14 |
18,400.88 |
125.26 |
0.7% |
| FTSE |
6,875.22 |
6,786.44 |
88.78 |
1.3% |
| Hang Seng |
23,919.34 |
23,162.34 |
757.00 |
3.3% |
| S&P 500 |
2,186.16 |
2,170.95 |
15.21 |
0.7% |
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INDIA MARKET REPORT
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Polished Trading Activity
Dealers focused on Hong
Kong show hoping stronger trading will raise liquidity. Large volumes expected on
display at the show. Polished inventory increased due to steady manufacturing amid
slow 2Q and 3Q polished sales. Stable demand for 1 ct., H-M, VS-SI diamonds.
Rough trading steady as factories ramp up production before closing for Diwali
(October 30).
Read the Polished Diamond Trading Report |
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