Trade
focused on important Hong Kong show starting next week as Far East retail shows
signs of recovery. Polished market facing financial difficulties in India and
weak demand as Aug. 1 ct. RAPI -0.6%, 0.30 ct. -1.4%, 0.50 ct. -2.3%, 3 ct.
+0.3%. Rough slow, with low premiums on secondary market. De Beers sells $505M
at Aug. sight after early Diwali brought demand forward to July. Alrosa 1H
revenue -17% to $2.7B, profit -46% to $848M due to strong ruble and weaker
product mix. Dominion 2Q sales +50% to $240M, profit of $31M vs. loss of $38M a
year earlier.
Fancies: Ovals selling well in US. Pears
and Cushions steady. Squares soft, with declining interest in Princesses. US
demand supporting market for commercial-quality, medium-priced fancies for
sizes under 1 ct. Selective buyers of large, fine-quality fancy shapes facing
limited supply. Far East demand improving as consumers seek fancy shapes at
better prices. Off-make, poorly cut fancies illiquid and hard to sell, even at
very deep discounts.
United
States: Markets
returning to normal after long Labor Day weekend. Trade has picked up since the
summer, with attention now turning to Hong Kong show. Market sentiment
improving, with better demand for 3 ct. and larger diamonds. Rising hopes for
holidays amid increased spending on diamond marketing and improved sales at
major retailers.
Belgium:
Market mixed, with
shortages and limited demand. Dealers returning from summer vacation, with
sales below expectations for this time of year. Good demand for 0.30 to 0.40
ct., F-H, SI, triple Ex, no fluorescence. Shortages of SI goods. Rough trading
slowed after buoyant 1H, creating concern among traders.
Israel:
Market uncertain amid
fears a sluggish Hong Kong show could result in reduced polished demand.
Companies buying at slow pace across categories. Weak demand for rounds up to 1
ct., with 3 ct. and higher quiet, especially in Far East. News of Indian
defaults creating concern among traders. Decline in demand hitting rough
sector. Israel Diamond Exchange to lease vacant bourse space to non-traders.
India: Market cautious amid reports of
diamond companies in financial distress. Manufacturers reducing polished
production to below capacity in response to oversupply and weak demand. Trading
activity limited as dealers focus on preparations for Hong Kong show. Indian
Commodity Exchange (ICEX) launches diamond-futures trading for 1 ct., H, VS2.
Hong
Kong: Dealer activity
slow as industry readies for show. Trading quiet at end of summer season. Jewelers
looking to increase inventory levels at show ahead of holidays but seeking
discounts. Dealers optimistic about retail recovery as Hong Kong July sales of
jewelry and other valuable gifts +13% to $791M, January-to-July sales +2.5% to
$5.3B. Macau 2Q retail sales of watches, clocks and jewelry +25%.
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