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Rapaport Weekly Market Comment
May 5, 2016
May 5, 2016 11:00 AM
By Rapaport News
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Rounds: Polished market slow with April 1 ct. RAPI -0.3%; 0.30 ct.
-1.3%. Steady U.S. demand raises expectations for Las Vegas shows. Chinese
jewelry sales steady during May Day holiday but Hong Kong hurt by fewer
tourists. Hong Kong 1Q polished imports -13% to $4.2B, exports -8% to
$3.2B.U.S. March jewelry sales +4% to
$4.1B but retail consolidation deepens as JBT reports 323
jewelry businesses closed in 1Q. India March polished exports +4% to $1.8B, rough imports
-5% to $1.4B. Lucara 1Q revenue +71% to $51M, profit +185% to
$17M. Lesedi la Rona 1,109 ct. rough sale expected
to exceed $70M ($63,120/ct.) at Sotheby’s London on June 29. Pawnbrokers
Cash America and First Cash to merge.
Fancies: Ovals doing well and
cushions have cooled off. Emeralds selling. Princess and Hearts slow. Top
quality fine-cut fancy shapes OK but buyers are extremely picky. Overall fancy
shape prices relatively soft. U.S. demand supporting market for
commercial-quality fancies, especially for sizes under 1 ct. 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: Polished trading
quiet. New York wholesalers filling orders but not buying for inventory. Steady
demand for 0.50 to 2.50 ct., G-J, VS2-SI2 RapSpec A2 diamonds. Ovals the
strongest fancy shape. Jewelry retail sales stable but consumer sentiment
weaker. Jewelers pushing promotions ahead of Mother’s Day. Engagement and
bridal sales supporting the market during summer wedding season.
Belgium: Activity muted with
trading cut short due to Thursday’s Ascension Day public holiday. Concern demand
is weaker than usual for this time of year. Trading focused on 0.30 to 1 ct.,
G-H, VS-SI RapSpec A2 diamonds. Inventory rising with new polished returning
from grading labs. Rough trading quiet but stable with cautious expectations
for next week’s ALROSA sale.
Israel: Polished market
quieter than earlier in the year. Dealers focused on U.S. market with rising
expectations for upcoming Las Vegas shows. Suppliers working with retail
programs selling at better prices than dealers of generic loose stones. Steady
demand for 0.30 to 1.99 ct., G-J, VS-SI diamonds. Rough trading slow.
India: Polished
trading slowing. Dealers anticipate quieter market through May school vacation
period. Sentiment relatively positive with expectations 2016 will be better
than last year. Steady U.S. demand ahead of Las Vegas shows. Chinese demand stable.
Domestic Indian demand improving since jewelers strike ended. Manufacturing
levels stabilizing and rough trading slow as new polished enters the market.
Hong Kong: Dealer
and jewelry wholesale markets quiet following May 1 Labor Day celebration.
Retailers note slight improvement in jewelry sales during the holiday but fewer
Chinese tourist arrivals. Sales in Mainland China reportedly positive. Jewelers combining May 1 and Mother’s
Day promotions. Official data shows Hong Kong diamond market contracted in
first quarter.
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Tags:
Rapaport News
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