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Rounds: All eyes on China as next week’s Spring Festival sets pace for jewelry sales. Polished trading improving as U.S. jewelers replenish stock following holiday season. Cutters increasing production after estimated $1B of rough enters the market in Jan. Concern that new polished supply may exceed demand. Shortages supporting prices as Jan. 1ct. RAPI +0.9%. LVMH 2015 jewelry & watch sales +19% to $3.7B, profit +53% to $482M. Titan 3Q sales +17% to $504M, profit +18% to $33M. Letšeng 4Q rough sales -5% to $64M, average price -1% to $2,117/ct. Belgium 2015 polished exports -9% to $13.1B, rough imports -25% to $11.1B. The Rapaport Group wishes all our friends a happy Chinese New Year. Fancies: Pears and Ovals in short supply due to limited production. Emeralds improving. Fairly good market for large top-quality fine-cut fancy shapes but buyers are extremely picky and supply is very tight. Cushions steady, Princess and Hearts slow. Overall fancy shape prices relatively soft. U.S. demand supporting market for commercial-quality fancies, especially for sizes under 1ct. 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: Jewelry retailers holding relatively large inventory with a lot of goods on memo. Positive sentiment with interesting designs at Miami Antique Show, Arizona Centurion Jewelry Show and AGTA GemFair in Tuscon. Buyers cautious and focusing on prices. Shortages supporting New York dealer market. Retailers preparing for Valentine’s Day with heavy online promotions. Belgium: Dealers relatively positive and polished prices firm following De Beers January reduction in rough prices. Short-term outlook positive but some concern about possible excess supply when new polished enters the market. Steady U.S. demand. Far East demand slow as wholesale buyers close for Chinese New Year vacation. Good demand for 0.30-2ct., G-J, VS-SI, RapSpec A2 (3X, none) diamonds. Antwerp’s ADTF diamond fair quiet. Rough trading steady after January sight. Israel: Positive sentiment continues after relatively good start to the year. Steady demand and shortages for RapSpec A2+ (3X, none) diamonds. Reasonably good demand for ovals, pears and emeralds and selective shortages in cushions and princess cuts. Overall trading driven by U.S. and light Chinese demand. Rough trading steady as manufacturers anticipate improved profitability due to lower rough prices. India: Polished trading slows slightly as Hong Kong and Chinese wholesale buyers close for Chinese New Year vacation. Domestic Indian demand cautious as weak rupee (-2.6% from Jan. 1 to 68/$1) weighs on sentiment. India tops Nielsen global ranking of consumer confidence. Demand from U.S. and Israeli dealers steady with some inventory buying. Good demand for 0.30-2ct., D-J, VS-SI, RapSpec A2 (3X, none) diamonds with some shift toward lower-priced 3VG goods. Shortages supporting prices as new polished production entering the market at a slow pace. Large Surat factories raising manufacturing levels and small cutters returning as rough becomes affordable. Hong Kong: Diamond dealer and wholesale jewelry markets quiet with most businesses closed for the Chinese New Year Spring Festival that begins on Monday (Feb 8). Hong Kong wholesale market expected to shut down for the week and China for most of February. Steady retail activity with jewelers offering strong promotions ahead of the Spring Festival. Hong Kong anticipating some tourist traffic from Mainland China but less than previous years as travel shoppers are shifting to Japan and South Korea. See www.diamonds.net/Prices/RapaportSpecs.aspx for full explanation of Rapaport Diamond Specifications.
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