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Rapaport Weekly Market Comment
January 7, 2015
Jan 7, 2016 11:06 AM
By Rapaport News
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RAPAPORT... Rounds: Polished
prices firm, market mood much better and rough demand improving due to polished
shortages. Manufacturing still at about 30% below capacity. We advise caution
as current market prices are based on shortages created by artificial rough
prices that are higher than resultant polished. Rough market volatility
expected in 1H as miners reduce prices to increase revenue. Chinese New Year
(Feb. 8) demand uncertain with Chinese economy under pressure as Shanghai stock
market plummets 12% since Jan. 1 and yuan currency devalued 2%. U.S. steady
after relatively positive holiday season. Signet
Jewelers reports Nov-Dec. sales +5% to $1.9B. Notice: Rapaport Diamond
Specifications updated as of 1/1/16. See www.diamonds.net/Prices/RapaportSpecs.aspx.
Fancies: Pears and Ovals in short
supply due to limited production. Emeralds improving. Fairly good market for
large top-quality fine-cut fancy shapes but buyers are extremely picky and
supply is very tight. Cushions steady,
Princess and Hearts slow. Overall fancy shape prices relatively soft. U.S.
demand supporting market for commercial-quality fancies, especially for sizes
under 1ct. 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: Dealers return from New Year vacation optimistic
about 2016 but profitability challenges remain. Shortage of RapSpec A2 (3X,
none) diamonds on the market. Good demand for 0.30-0.80ct., G-J, SI-I2
diamonds. Still a lot of goods out on memo and dealers unsure how much new
inventory retailers will require after Christmas. Overall, retailers positive
about the holiday shopping period with some noting a drop in traffic but rise
in online buying and sales of larger-ticket items.
Belgium: Better mood in Antwerp than before Christmas-New
Year although trading is still cautious. Prices supported by shortages with
dealers competing for RapSpec A2 (3X, none) diamonds. Some buyers are shifting
away from RapSpec A2 and 3X due to shortages as they find good deals on RapSpec
A3 or VG-quality diamonds. Good demand for 0.30-0.50ct., D-J, VS-SI and stable
demand for 1ct., G-J, VS-SI diamonds. Steady demand for pears, which are
increasingly being used in engagement rings. Rough trading quiet and
uninteresting.
Israel: Market stable with much better mood than two months ago.
Dealers feel the market has bottomed and there is positive momentum. Prices
supported by shortages and U.S. demand. Chinese demand improving but dealers
are cautious about China and Hong Kong during the Chinese New Year. Steady
demand for RapSpec A2 (3X, none) 0.30-0.99ct., G-J, VS-SI and 1-2ct., D-J,
VS-SI diamonds. Fancy shapes stable with relatively good demand and shortages
for pears and ovals. Rough trading quiet as dealers note there is a lack of
goods and expect prices to soften.
India: Trading improving. Sellers holding the right goods are able
to get good prices. Shortages of RapSpec A2 (3X, none) diamonds. Good demand
and shortages for 0.30-0.50ct., D-J, VS-SI diamonds. Buyers with orders are
looking at lower-qualities (RapSpec A3 and lower) as prices for RapSpec A2 are
strong. Rough demand improving but manufacturers maintaining polished
production at estimated 30 percent below capacity.
Hong Kong: Trading improving as jewelers prepare for the Chinese New Year
(Feb. 8). Shortages in GIA-dossiers supporting prices with good demand for
RapSpec A2 (3X, none) 0.30-0.50ct., D-J, VVS1-SI diamonds. Large stone market
cautious. Mixed expectations for Chinese New Year. Hong Kong-based retailers
concerned that drop in tourist numbers will impact sales. Mainland China more
optimistic although this week’s stock market collapse (SSE Composite Index -12%
since Jan. 1) may affect consumer sentiment.
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Tags:
Rapaport News
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