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Rapaport Weekly Market Comment
July 21, 2016
Jul 21, 2016 11:00 AM
By Rapaport News
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Markets
weak during summer trading lull. Dealers frustrated by sluggish demand, rising
inventory and tight profit. Rough market quiet with lower premiums during
ALROSA sale. De Beers 1H production -15% to 13.3M cts., sales +29% to 17.2M
cts., prices -14% to $177/ct. ALROSA
1H production -16% to 16.9M cts., sales +21% to 21.7M cts., prices -3% to
$117/ct. Rio Tinto 1H production +2% to 8.96M cts. Letšeng 1H sales flat at
$106M, average price -16% to $1,899/ct.Israel 1H polished
exports -14% to $2.6B. Chow Sang Sang warns 1H profit -50%/-60%. Luk Fook 1Q same-store
sales -22%. Morgan Stanley predicts lab-grown diamonds to capture 15% of melee
market, melee prices under pressure.
Fancies: Markets slow with some weakening of
prices. Ovals and Pears doing well. Cushions supported by specific orders.
Emeralds selling with improving large-stone demand. Princess and Hearts slow.
Top quality fine-cut fancy shapes OK but buyers are extremely picky. Overall
fancy shape prices relatively soft. U.S. demand supporting market for
commercial-quality fancies, especially for sizes under 1 ct. 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: Trading quiet
after dealers returned from vacation. Tough to sell goods that are not typical,
commercial-quality diamonds for engagement ring market. Steady demand for 1 to
3 ct., G-I, VS2-SI2 diamonds. Design trends under spotlight at next week’s JA
shows (July 24 to 26) with very few diamond vendors involved. Consumer
confidence slides in July as Brexit concerns high income earners.
Belgium: Polished market slow. Dealers buying
only what they need before vacation begins (August 1 to 22). Pockets of good
demand with buyers seeking nice-make, commercial-quality RapSpec A2 (3X, none)
diamonds. Fancy color diamonds steady.Top-quality
pear shapes improving. Rough demand slow with lower premiums for Russian goods during
monthly ALROSA sale.
Israel: Sentiment weak with
July trading slower than usual. Some suppliers discounting to improve turnover
and increase liquidity. Slow market expected at least until September. Slightly
slower demand and increasing inventory for 1-carat, D-H, VS1-VS2 diamonds. Good
fancy color demand for blue and pink diamonds. Yellows weaker. Rough market
quiet with slight price decreases at auctions and tenders.
India: Some U.S. and Chinese buyers in Mumbai
looking for bargains but trading slow and sentiment weak. Quiet market expected
through August. Low expectations for Mumbai show (August 4 to 8) with gold
jewelry demand sluggish at high gold prices in rupee. Manufacturing stable with
less rough available and slower trading on secondary market ahead of next
week’s De Beers sight.
Hong
Kong: Dealer market quiet
but stable during seasonally slow period. Jewelers only buying for specific
customer demand and not for inventory as retail sales contract. Publicly traded
jewelers cautious and noting that Hong Kong sales are weak, China just okay.
Jewelers discounting to attract more consumers and reduce inventory. Diamond
buyers looking for opportunities at lower prices which may encourage demand at
September show.
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Tags:
Rapaport News
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