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Rapaport Weekly Market Comment
May 11, 2016
May 11, 2016 5:18 AM
By Rapaport News
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Rounds: Market sentiment improving despite lackluster May trading.
Polished inventory rising as new production comes on stream. Rough trading slow
with reduced supply reported at ALROSA sale, while sightholders anticipate
stable prices at next week’s De Beers sight. Lucara sells 813 ct. rough diamond
for $63M ($77,649/ct.). Sarine 1Q revenue +27% to $16M, profit triples to
$3M. Titan Company FY sales -5% to $1.7B, profit -16% to $104M. Blue Nile 1Q
sales -3% to $103M, profit -9% to $1M. U.S. March polished imports -5% to $2B,
polished exports -15% to $1.5B. Belgium April polished exports -14% to $899M,
rough imports +34% to $1.2B.
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: The market
remains quiet. Cautious expectations for 2H due to restrained consumer spending
and uncertainty caused by the upcoming election. Steady demand for 0.50 to 2
ct., G-I, VS2-SI2 diamonds. Growing trend toward stacked and layered jewelry
driving demand for smaller diamonds. Bridal market steady and strong.
Belgium: Polished trading stable with dealers concerned
about lagging consumer demand. Polished supply rising but demand is selective.
Good demand for 0.30 to 2.99 ct., D-J, VS-SI RapSpec A2 diamonds. Demand for 3
and 4 ct. stones weak. AWDC notes good U.S. demand for high-value diamonds and
steady demand from the Gulf for lower qualities. Rough trading slower than
April.
Israel: Polished trading steady but activity declines as
bourse closes for Memorial Day and Independence Day.Sentiment improving
as dealers prepare for Las Vegas shows. Good demand for 0.30 to 0.40 ct., G-J,
VS-SI, RapSpec A2 diamonds and for 7 to 8 ct. stones which are in short supply.
Weak demand for 3 ct., D-H, IF-VS2 diamonds. Rough trading stable ahead of De
Beers sight with persistent concerns about high prices.
India: Market slow with some dealers taking vacation
during ongoing school holiday. Dealers focused on filling U.S. orders with
rising expectations for Las Vegas shows. Asia Pacific demand cautious. Domestic
Indian demand improving. Good demand for dossiers, particularly 0.30 to 1 ct.,
G-J, VS-SI, RapSpec A2 diamonds. Inventory levels rising as new polished
production becomes available. Manufacturing steady. Rough demand slower during
this week’s ALROSA sale.
Hong Kong: Weak consumer sentiment impacting jewelry sales. Jewelry
retailers relying on steady sales in Mainland China to compensate for sluggish
Hong Kong market. Major jewelers exploring growth potential on e-commerce and
mobile platforms as they roll back brick-and-mortar expansion. Diamond trading
stable with dealers maintaining cautious outlook for 2H.
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Tags:
Rapaport News
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