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Rapaport Weekly Market Comment
June 9, 2016
Jun 9, 2016 11:00 AM
By Rapaport News
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Rounds: JCK Las Vegas show traffic slower
than previous years but meets conservative expectations. Exhibitors concerned
about sluggish demand, synthetics, marketing to millennials, and U.S. election
uncertainty. Upbeat Antique show signals improving demand for branded estate
jewelry. May 1 ct. RAPI flat, 0.30 ct. -1.1%. Signet shares plunge 20% as Kay
Jewelers defends ‘diamond swapping’ claims. Chow Tai Fook FY revenue -12% to
$7.3B, profit -46% to $384M. U.S. April polished imports +3% to $1.9B. Belgium
May polished exports +5% to $1.1B, rough imports +18% to $1.3B. Stuller joins Int’l
Grown Diamond Association. DPA unveils marketing slogan: ‘Real is Rare.
Real is a Diamond.’
Fancies: Ovals doing well and cushions improving.
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: Mixed sentiment
at Las Vegas shows. Buyers looking for specific items and not purchasing
for inventory. Suppliers with the right stock and who were willing to
compromise a bit on price made sales. Good demand for 1 ct. over-sizes, J-L,
VVS-SI and 10 ct.+, J-L, VS2-SI1 diamonds. Ovals strongest fancies shape. Cushions
making a comeback. Steady jewelry sales driven by robust bridal market. A lot
of goods being sent out on memo.
Belgium:
Polished trading
slowly improving after quiet May. Fewer Antwerp-based exhibitors at JCK Las
Vegas than previous years. Stable demand for 0.30-0.70 ct., G-J, VS-SI, RapSpec
A2 diamonds. Improving demand for 1 ct., G-J, VS-SI and good European and Asian
demand for under-the-carat GIA dossiers. Rough trading steady with stable
prices for Russian goods. Concerns about rising inventory levels ahead of slow
summer months.
Israel:
Trading in the bourse
quiet with many dealers at Las Vegas shows. Sentiment relatively positive even
as JCK show fell short of expectations. Inventory levels rising.Good demand for top make RapSpec A2
diamonds. Stable demand for 1 ct., D-H, VS-SI diamonds and large 10+ ct., G-J,
SI’s. Fancy shapes steady with good demand for ovals and cushions. Fancy
yellows sold well in Vegas. Rough trading quiet.
India: Activity back to normal after May
summer break with foreign buyers looking for goods in Mumbai. Dealers at Las
Vegas shows note stable U.S. demand but concerned about consumer sentiment. Small
goods weak at the show. Steady demand for dossiers. Rough trading quiet after
relatively large De Beers and ALROSA May sales. Manufacturing levels stable
again after summer vacation with polished inventory expected to rise in coming
months.
Hong
Kong: Diamond trading
quiet with dealers interested in Las Vegas. Suppliers preparing for June Hong
Kong show (June 23 to 26), the smallest of the three annual Hong Kong fairs.
Jewelers note tough retail environment in Hong Kong as tourism has dropped.
China jewelry sales stable with Chow Tai Fook noting consumers increasingly seeking
personalized shopping experience.
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Tags:
Rapaport News
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