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Rapaport Weekly Market Comment
June 16, 2016
Jun 16, 2016 11:00 AM
By Rapaport News
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Rounds: Diamond markets slow as Las Vegas shows fail to stimulate
stronger demand. Low expectations for next week’s June Hong Kong show with
Chinese buyers cautious amid unsure market conditions. Stable rough prices with
reduced supply expected at ALROSA sale and next week’s De Beers sight.
Liquidity concerns deepen as Standard Chartered to exit “risky” diamond
business and other banks tighten industry credit. Luk Fook warns FY profit
-35%/-45%. Christie’s NY sells $42M (69% by lot) with rectangular, 24.18 ct.
fancy intense blue, VS2 ‘Cullinan Dream’ selling for $25.4M ($1.04M/ct.). RJC
elects Wilfried Hoerner as chairman.
Fancies: Ovals doing well. Cushions improving with better
demand at JCK show. 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: Las Vegas
shows just okay. U.S. Jewelry market stable but diamond demand slow. New York
dealers filling orders and sending goods out on memo. Jewelers buying only what
they need to satisfy narrowing consumer demand. Bridal sustaining the market
with good demand for 0.75 to 1.25 ct., H-J, SI-I2 diamonds for engagement
rings. Colored diamonds and gemstones gaining in popularity.
Belgium: Polished trading slow and sentiment weak. Dealers
returned from Las Vegas with low expectations met. Buyers picky. Dossiers and
1-carat slowing. Fancy shapes improving, particularly ovals, pears, and
marquises, 0.40 to 0.80 ct., H+, VS-SI goods. Steady demand for light yellow
color diamonds in line with U.S. fashion jewelry trends. Tightening bank
financing a major concern.
Israel: Dealers back from Las Vegas with mixed reviews
about the show. Demand was very specific with buyers looking to fill existing
orders with narrow specifications. Good demand for SI’s in all categories.
Steady fancy shape demand with ovals and cushions the strongest shapes. Focus
shifting to Asia with 50 Israeli companies attending next week’s Hong Kong
show.
India: Market slow. U.S. demand steady despite
relatively weak Las Vegas shows. Large manufacturers satisfied with demand from
large jewelry chains. Smaller suppliers had a mixed show. Indian domestic
demand cautious. Asia slow. Local dealers hope June Hong Kong show will keep
the market moving but expectations are low. Polished inventory rising with
stable production levels and sluggish demand. Rough trading stable with muted
expectations for next week’s De Beers sight.
Hong
Kong: Low
expectations for next week’s show. Chinese buyers traveling to the show to
assess market conditions rather than buy goods. Chinese demand slowing with
jewelers discounting to attract customers. Dealer trading stable but cautious
with margins under pressure. Demand order-specific with no inventory buying.
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Tags:
Rapaport News
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