|
|
Market Comments 3/14/2013
Mar 14, 2013 6:00 PM
|
|
|
Hong Kong show boosts market confidence. 0.30-0.40ct., G-K, VS2-SI2 certs are hot with good demand through 1ct. Oversizes bringing premiums. CAUTION: speculative rough prices unsustainable. U.S. retail improves with Jan. jewelry store sales +15% to $1.9B. Chow Tai Fook Jan.-Feb. same-store sales -2% with China -7% and Hong Kong / Macau +5%. Gem Diamonds 2012 revenue -34% to $202M, loss of $77M vs. profit of $35M. Belgium’s Feb. polished exports -9% to $1.3B, rough imports +8% to $1.2B. Christie’s expects pear-shape, 101.73ct., D, IF diamond to fetch estimated $20M ($197K/ct.) at May Geneva auction.
Fancies: Fancy markets OK but not enjoying significant Far East demand as rounds. Demand for large 7ct.+ better quality fancies improving. Lower fancy shape price points attracting price sensitive buyers. Strong demand for under the carat Princess cuts. Cushions relatively weak but doing better as oversupply eases. Reasonable demand for Pears and Ovals. Marquise weak. Improving demand for fancies at attractive price points encouraging U.S. buyers. Extreme price differentials between excellent/fine and average cut fancy shapes.
Global Markets
United States: The polished market is stable with suppliers trying to raise prices but meeting resistance from U.S. retail buyers. Sentiment is up as jewelry sales increased and retail margins have improved so far in 2013. There is demand from large retail jewelers ordering to fill their program needs with the focus on price-point items. Still, the large jewelry brands have expressed more caution than the independent and small jewelry chains. Bridal remains the mainstay of the industry with good demand for round center stones in the range of 0.5-carat to 1.25-carat, G-I, SI- diamonds.
Belgium: Polished trading is steady. Dealers have gained confidence as the market continues its uptrend evident since January. In addition, buyers have been willing to absorb slightly higher prices that were apparent at the Hong Kong show. Manufacturers note improved profit margins on their current polished production but are concerned that may be short lived given the prevailing high rough prices.
Israel: Sentiment has improved with suppliers returning from Hong Kong upbeat about the market. They note strong demand for dossiers up to 1-carat, VS-SI, Triple Ex. Anticipation has risen for the upcoming U.S. / International Diamond Week in Ramat Gan (March 17 – 20). Suppliers are shifting their focus from the Far East to goods suitable for the U.S. market, mainly SI-I clarity stones, ahead of the event. Rough trading is stable with dealers unclear whether the recent price uptrend will continue through the next sight cycle.
India: The market is positive after the Hong Kong show, which signaled steady demand from both Chinese and Indian buyers. Trading has shifted back to Mumbai although a large quantity of goods has not yet returned from Hong Kong. There are shortages in the polished market, particularly for certified VS and SI- stones for which there has been strong demand in recent months, while overall manufacturing remains below capacity. Liquidity is tight, which is expected before the end of the fiscal year (March 31). The rough market is stable with prices remaining firm on the secondary market. Manufacturing is expected to ramp up in the new fiscal year beginning in April.
China: Wholesale trading is strong as dealers expect polished prices to trend up after the Hong Kong show. However, the retail market is relatively slow, given this traditionally quiet period of the year, and remains below previous year levels. Polished diamond buyers are more confident than before but continue to contain the volume of their purchases. A supply shortage of 0.30-carat to 0.40-carat, Triple Ex goods is driving demand.
Hong Kong: Diamond trading has remained firm since the show with steady demand for 0.30-carat to 1.99-carat, VS-SI goods and some improvement in demand for VVS stones. Dealers note supply shortages in certain popular stones such as 0.30-carat to 0.40-carat, VS-SI diamonds, which is supporting higher price points. Retail sales are steady as overall market sentiment has improved since the start of the Chinese New Year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|