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Market Comments 12/10/2015
Dec 10, 2015 6:00 PM
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Polished trading improving
with holiday demand as shortages support prices for RapSpec A2+ (3X, none)
diamonds. 0.30-0.40ct. improving with significant reductions in supply. Rough
demand strong at tenders but very weak for De Beers overpriced rough. Dec.
sight estimated at about $100M vs. $577M last year. De Beers says rough prices
down 15% in 2015 and its 2016 production will fall from 29M to 26/28M cts.
Anglo American moving to Charterhouse as De Beers avoids massive cost-saving restructure.
Petra Diamonds sells 23.16ct., pink rough for $10M
($433,938/ct.). Sotheby’s NY sells $52M. U.S. Oct. polished imports -4%
to $2.2B, polished exports -13% to $1.3B.
Fancies: Demand soft. Pears,
Ovals and Cushions steady, Princess, Hearts slow. Prices for curves improving
slightly. U.S. demand supporting market for commercial-quality fancies,
especially for sizes under 1-carat. 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: Wholesale market
sentiment improves as dealers fill last-minute holiday orders. Limited supply
supporting prices, particularly for 0.30-1ct., G-J, SI diamonds. Demand sluggish
for larger goods above 2ct. Shortages limiting pre-Christmas transactions as
dealers struggle to replace shrinking inventories. The market is still tough with
buyers placing low offers and uncertainty about prices. Retail sales steady
with good demand for branded bridal jewelry.
Belgium: Polished trading stable with
buyers filling orders rather than stocking inventory. Suppliers focusing on
U.S. and European markets, with some Far East demand. Better trading since
Diwali but activity not at levels expected for this time of the year. Good
demand for round, 0.30-1.10ct., F-I, VS-SI diamonds with GIA or heavily
discounted HRD reports. Dealers concerned that easy bank credit in India is keeping
unprofitable and illiquid companies afloat. Rough trading weak during De Beers
sight while Antwerp auctions remain firm.
Israel: Trading continues to
improve due to U.S. holiday demand, some Far East orders and limited supply of
better quality RapSpec A2+ (3X, none) diamonds. Lack of supply and competition creating
better prices for 4ct.+, D-H, IF-VS2 diamonds. Larger dealers driving the
market and setting firm prices for goods. U.S. demand stable, Far East
cautious. Fancy shapes stable with shortages in nice ovals and pears. Squares
weak.
India: Polished market
continues to improve after manufacturers and dealers return from the Diwali
break. Good local buying activity with U.S. and Israeli dealers. Light Asian
presence. Improving demand and increasing shortages for better-quality
0.30-0.40ct., G-J, VVS2-SI2 diamonds. Inventory levels continue to diminish as
manufacturing remains well below capacity and holiday orders are filled. Very
few fresh goods coming into the market as De Beers restricts supply due to
overpricing of rough.
Hong Kong: Polished
trading is stable with good demand for dossiers, 0.30-1ct. diamonds. Some
Christmas and Chinese New Year demand for RapSpec A2+ (3X, none) 0.30-0.40ct.
D-J, VS-SI diamonds, which are in tight supply. Lower qualities weak. Jewelry
retail sales slow in Hong Kong and Macau, stable in Mainland China. Dealers and
jewelers shifting from Hong Kong to Shenzhen free-trade zone to attract Chinese
tourist shoppers.
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