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Rapaport Weekly Market Comment
January 21, 2015
Jan 21, 2016 11:00 AM
By Rapaport News
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Rounds: Polished prices firm due
to shortages. Rough demand improving as manufacturers try to fill gaps in
supply amid unconfirmed reports that De Beers has cut prices 5-7% at Jan.
sight. Demand is cautious due to weak global economy and plunging stock markets:
Dow -10% (Jan. 1-20), oil slumps below $30. Low expectations for Lunar New Year
as China’s 2015 GDP growth slows to 6.9%. Christmas retail season softer than first
reported as Tiffany Nov.-Dec. sales -6% to $961M. India Dec. polished exports
-17% to $1.2B, rough imports +2% to $1.5B. Rio Tinto 4Q production +50% to 4.3M
cts., Simon Trott replaces Jean-Marc Lieberherr as diamond chief.
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: Mood improving and
dealers are looking for select goods. Liquidity is tight. Suppliers giving
higher discounts for cash deals, while buyers are insisting on credit terms. Some
buying for inventory after the holiday season but overall demand remains
selective. Good demand for 0.30-1ct., G-J, VS-SI diamonds. Melee slightly weak
with dealers still holding a lot of inventory. India Diamond Week at NY Diamond
Dealers Club quiet. Jewelry retail stable with stores starting to promote for Valentine’s
Day. Mixed sentiment about Dec. holiday period following weak Tiffany
results.
Belgium: Dealers gaining in
confidence as polished prices firm. Shortages supporting prices with no substantial
rise in demand ahead of Chinese New Year. U.S. demand stable. Steady demand for
0.30-2ct., D-H, VS-SI, RapSpec A2 (3X, none) diamonds. Still relatively large
volume of lower qualities on the market and significant premiums for 3X versus 3VG
cuts. Rough market more active than before with single-digit premiums reported on
De Beers boxes during sight week.
Israel: Rising dealer
confidence. Polished prices firming due to limited availability of fine-cut
goods and some U.S. post-holiday and Chinese New Year demand. Trading levels
below previous years and uncertainty persists. Dealers looking for market
direction at March Hong Kong show. Far East demand before Chinese New Year slower
than previous years. U.S. is the strongest market but Israeli suppliers
hesitant to sell on credit. Good demand for ovals and pears with a shortage of
top-make fancy shapes. Slight improvement in emeralds and cushions. Rough
trading steady with good demand at Rapaport polished auction due to shortages.
India: Greater
optimism about the market as prices firm due to shortages. Trading improved
since Diwali. Suppliers still concerned about China as Chinese New Year demand is
very soft. Weak emerging markets weighing on sentiment with rupee sinking below
INR 68/$ to near record lows. Weak currency reducing domestic demand, but
helping exports. Rough improving during sight week as manufacturers are slightly
increasing polished production to fill shortages.
Hong Kong: Dealers
filling last-minute orders before the market shuts down for the Chinese New
Year Spring Festival (Feb. 8). Many wholesale businesses in Mainland China set
to close for a month toward the end of Jan. Overall, demand is relatively quiet
for this time of year as Chinese and Hong Kong retailers remain cautious and
economic growth slows. Expectations are low for the festival with fewer
tourists from Mainland China anticipated in Hong Kong.
See www.diamonds.net/Prices/RapaportSpecs.aspx
for full explanation of Rapaport Diamond Specifications.
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Tags:
Rapaport News, Rapaport Weekly Market Comment
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