Polished trading seasonally slow as US dealers return from vacation and Belgian and Israeli suppliers soon to begin theirs. Rapaport Melee Index (RMI™) stable in 2Q. Jewelers not yet benefiting from US stock-market boom as consumer spending remains cautious. China turning a corner as retail improvement boosts 2Q GDP growth +6.9%. Luk Fook 1Q same-store sales +5% with China +23%, Hong Kong/Macau +3%. De Beers 1H production +21% to 16.1M cts., sales +9% to 20M cts., average price -12% to $156/ct. Rio Tinto 2Q production -2% to 4.3M cts. Dominion Diamond Corp. to be sold to The Washington Companies for $1.2B. Signet appoints Virginia Drosos to CEO position as Mark Light retires.
Fancies: Ovals best-selling fancy shape in US market, with shortage of 3 ct. stones. Cushions gaining popularity. Steady demand for Pears in the Far East. Emeralds improving and selling better than Princesses in larger 2 ct.+ sizes. Some demand for big fancy shapes such as Radiant, 3 ct.+, D-I, SI1-SI2 elongated stones, but buyers extremely picky. Large price differentials between excellent- and average-cut fancies. Off-make, poorly cut fancies illiquid and hard to sell, even at very deep discounts.
United States: Trading slow as dealers return from vacation. Large volume of goods available. Widening price gap between RapSpec A2, 3X, no-fluorescence diamonds, and lower-quality goods. Steady demand for 1 ct., G-H, VS-SI, RapSpec A3+ diamonds. Jewelry wholesalers and dealers preparing for next week’s New York JA show.
Belgium: Quiet market, with dealers in vacation mode ahead of the official summer break (July 31 to August 18). Many expat Indian dealers traveling to Mumbai for vacation period. Sentiment weak. Suppliers cautious about giving credit following Exelco default. Sufficient volume of goods on the market. Steady demand for 2 ct.+, D-F, IF-VVS goods.
Israel: Trading expected to remain quiet through August vacation period, with many dealers already on holiday. Reduced demand and rising inventory for 0.30 to 0.40 ct. diamonds, reversing the upward trend from earlier in the year. Manufacturers concerned about profitability ahead of next week’s De Beers sight.
India: Slow market, with disappointing US demand and selective Chinese orders. Inventory levels rising, especially for VVS+ diamonds. Manufacturing levels stable, but activity expected to decline before Diwali amid sluggish polished demand. Diamantaires maintaining low expectations for next week’s IIJS show (July 27 to 31), where focus is more on gold jewelry than diamonds. Businesses concentrating on understanding impact of new GST goods and services tax.
Hong Kong: Local trading slow, with dealers focusing on mainland China. Dealers anticipate August market improvement as activity tends to pick up in the summer months ahead of the busy retail fourth quarter. Steady demand for 1 ct., F-J, SI, RapSpec A2+ diamonds. Jewelers shifting to lower price points are compromising on clarity rather than color. Rising interest in fancy color diamonds, especially yellows and pinks.
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