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Rapaport Weekly Market Comment
December 1, 2016
Dec 1, 2016 11:00 AM
By Rapaport News
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Holiday season begins
with optimism as stock markets hit record high on Black Friday. Foot traffic flat,
average spend -3% to $289 over Thanksgiving weekend, reports NRF. Millennial
shift to online purchases continues with Cyber Monday sales +13% to $3.5B, according
to Adobe Digital Insights. Polished market
stable with buying opportunities in India due to rupee liquidity crisis.
Shrenuj nears deal to ease $450M debt as De Beers sight suspended. Christie’s
HK sells $79M (80% by lot). Tiffany 3Q sales +1% to $949M, profit +5% to
$95M. Lukoil 3Q Grib diamond sales +33% to $62M. Alan Bronstein elected
president of Natural Color Diamond Association.
Fancies:
Fancy-shape
market stable. Curved fancy shapes improving. Princess, 0.50 to 1 ct. waking up
for U.S. holiday season. Large sizes getting some interest, but buyers are
extremely picky. U.S. demand supporting market for small-to-medium size,
commercial-quality fancies (H-J, SI2-I2). Far East fancy demand weak.
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: Positive sentiment as stock market rally and strong
dollar lift expectations for holiday season. Jewelers expect sales bump in
coming weeks. Tiffany 3Q signals strong fashion jewelry segment, stable
engagement and wedding market but weakness in high-end statement pieces. Slight
increase in last-minute orders with steady demand for 1 ct., G-H, VS-SI diamonds.
Belgium:
Trading
quiet with steady low-volume orders for the holiday season. Some dealers buying
bargains (“Metzios”) amid Indian liquidity crisis. Steady demand for 0.30 to
0.90 ct., D-H, VS-SI, RapSpec A3+ diamonds with reports that 3X SI’s in short
supply. Stable U.S. demand for caraters. Rough trading quiet ahead of next
week’s De Beers sight and ALROSA sale.
Israel:
Polished
trading stable with steady orders from U.S. independent retailers. Demand from
larger chains has slowed. Little inventory buying as jewelers focus on selling
during holiday season. Dealers working with lower inventory as businesses
streamline activity due to tight profit margins. Steady demand for 1 ct. G-H,
VS-SI, RapSpec A3+ diamonds. Fancy colors and curved fancy shapes stable.
India:
Polished
trading quiet with dealers very cautious after rupee currency cancellation.
Domestic demand slow. Opportunistic foreign buyers looking for bargains during
liquidity crunch. Larger manufacturers with legitimate invoicing relatively
unaffected with steady U.S. orders. Rough demand stable since manufacturers returned
from Diwali break.
Hong
Kong: Steady
traffic at Jewellery Manufacturers Association Show (Nov. 24-27) but diamond sales
weak. Chinese buyers cautious after yuan currency depreciation (Nov. -2% to 6.88/$)
with some buying to avoid further currency loss. Indian dealers absent due to
liquidity crisis. Rising concern about synthetics in local trade, consumers
less aware.
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Tags:
Rapaport News
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