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Rapaport Weekly Market Comment
November 24, 2016
Nov 24, 2016 11:00 AM
By Rapaport News
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Sentiment improves as holiday season starts with early Black
Friday sales. Retailers discounting heavily with Macy’s offering -70% on fine
jewelry. Diamond trading quiet amid tight Indian liquidity due to currency
cancellation. Chinese and Indian demand cautious as U.S. dollar trumps up to
13-year high. Signet 3Q sales -3% to $1.2B, profit +13% to $17M. Chow Tai Fook
1H revenue -24% to $2.8B, profit -19% to $164M, opens first U.S. outlet in
Macy’s. ALROSA 3Q revenue +70% to $1.1B, profit of $414M vs. loss of $237M.
India Oct. polished exports +37% to $2.5B, rough imports +17% to $1.3B. The
Rapaport Group wishes all our friends a happy Thanksgiving and a successful
holiday season.
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. Fancy shape prices relatively soft in a buyer’s market. 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:
Retail sentiment positive ahead of Thanksgiving weekend. Good season expected
with low unemployment, improving consumer confidence, and strong dollar raising
likelihood of Dec. interest rate hike. Polished market stable but trading
volume lower than previous years. Dealers filling orders for holiday season
with steady demand for 1 ct., G-H, VS2-SI1 diamonds.
Belgium: Stable demand but trading restrained as India’s
cancellation of currency notes destroys liquidity. Very little buying for
inventory as dealers fill specific holiday orders. Steady demand for 1 to 2
ct., G-J, VS-SI, RapSpec A3+ diamonds. Good demand for pears and ovals. Market
improving for better-quality blues, pinks and yellows. Commercial-quality fancy
colors not as hot. Rough market quiet after relatively small ALROSA Nov. sale.
Israel: Steady trading with foreign buyers trying to get
better prices in Ramat Gan than elsewhere. Suppliers maintaining firm prices
with rising expectations for U.S. retail season. Good Far East demand for 0.30
to 0.50 ct., G-J, VVS-SI, RapSpec A2 diamonds. Large delegation of Israeli
dealers participating in Hong Kong International Jewelry Manufacturers’ Show
(Nov. 24-27).
India: Diamond market cautious as dealers assess impact
of currency cancellation. Local demand for small and lower quality diamonds
plummets. Exporters boosted by weaker rupee versus dollar (-3% to 68.7/$1 in
Nov.). Stable U.S. demand ahead of holiday season. Manufacturing slowly
resuming as workers return from Diwali break. Rough demand restrained with
tight liquidity and low profit margins.
Hong
Kong:
Polished trading slow with dealers hoping this week’s International Jewelry
Manufacturers’ Show will boost demand. Exhibitors expect the smaller show to
provide stronger selling opportunities than much bigger March and September
Hong Kong fairs. Chinese demand cautious down as yuan currency depreciates
against the dollar (-2% to 6.9/$1 in Nov). Hong Kong retail sales continue to
decline.
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Tags:
Rapaport News
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