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Rapaport Weekly Market Comment
June 2, 2016
Jun 2, 2016 8:23 AM
By Rapaport News
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Rounds:
Industry focused on Vegas shows. U.S. demand
supporting the market but dealers cautious as May consumer confidence index
slips 2%. ALROSA expects short-term rough market stability as 1Q sales +37% to
$1.6B, profit +125% to $758M, inventory reduced from 22M to 18M
cts. Christie’s Hong Kong sells $61.7M (72% by lot) with rectangular, 5.03
ct., fancy vivid ‘Aurora Green’, VS2 diamond sold to Chow Tai Fook for $16.8M
($3.3M/ct.). Gitanjali Gems FY sales +22% to $2B, profit +51% to $20M. Bruce
Cleaver appointed De Beers CEO as of July 1.
Fancies:
Ovals doing well but 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: Trading slowed slightly after Memorial
Day weekend with many dealers waiting for the JCK Las Vegas show to source
goods. Sentiment improved in anticipation of the Las Vegas shows despite mixed
signals from the retail sector. Affordable jewelry brands doing well, while
high-end struggling to connect with millennials. Bridal remains strong and
expected to feature in Las Vegas.
Belgium:
Trading slowed although fewer Antwerp dealers traveled to Las
Vegas shows this year. Local buyers focused on finding bargains but suppliers holding
firm, at least until Vegas. Steady demand for 0.30 ct. to 1 ct., G-J, VS2-SI
diamonds, while demand for 3 ct. and larger diamonds weak. Rough trading didn’t
slow as expected with stable demand after May sight cycle. Concerns about
over-supply in 2H persist.
Israel:
Slow polished trading. High hopes but low
expectations for JCK Las Vegas show with more than 60 Israeli companies
participating. Steady demand for 0.30 ct. to 1.99 ct., H-J, VS2-I2 diamonds. 3
ct. slow except SI’s. Demand for fancy shapes stable with ovals and pears being
the strongest selling shapes. Rough trading is quiet but stable.
India:
Trading sluggish due
to ongoing summer holidays. Dealers waiting for Las Vegas shows hoping steady
U.S. demand will stimulate global trading in the coming months.Sentiment
relatively weak with liquidity tight amid rumors of possible financial
defaults. Manufacturing levels stable with steady rough demand from
small-to-medium size factories. Lingering concerns about polished oversupply
after robust rough trading in May.
Hong
Kong: Activity stable with dealers eyeing trends and
price movements at JCK Las Vegas. Relatively weak local demand with concern
about difficult retail environment. Tourist traffic from Mainland China has
dropped, affecting jewelry retail sales. Steady demand for 0.30 ct. to 1.99
ct., F-H, VS-SI, RapSpec A2 diamonds. Mainland China diamond trading better
than Hong Kong. |
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Tags:
Rapaport News
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