|
|
Rapaport Weekly Market Comment
Aug 18, 2016 11:00 AM
By Rapaport News
|
|
|
Diamond markets quiet and conservative. Buyers selective and price sensitive. Dealers hoping Sept. Hong Kong show will stimulate
stronger 4Q polished trading. Chinese consumer confidence stable but Hong Kong
luxury continues to slide. Polished suppliers under pressure with rising
inventory and tight liquidity. Israel’s FIBI bank raises collateral
requirements for diamond loans. Steady demand for 1 to 2.99 ct., D-I, SI1-I2
but VS+ softening. Stars and melee weak with sluggish demand and concerns about
synthetics. Titan 1Q sales +4% to $416M, profit -16% to $19M. Gem Diamonds 1H
revenue -8% to $109M, loss of $16M vs. profit of $26M. Botswana 2Q rough
exports +16% to $980M.
Fancies: Markets slow with some weakening of prices. Ovals and Pears
doing well. Cushions supported by specific orders. Emeralds selling with
improving large-stone demand. 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: Slight
trading improvement but polished buyers in summer mode.Demand selectivewith lower prices spurring buyer interest. Retail sales uneven with growth
driven by higher average prices rather than increased volume. Independents
assessing inventory requirements for holiday season. Consumer sentiment stable.
Belgium: Market quiet with bourse services
closed until August 22.
Israel: Very little activity with the Israel
Diamond Exchange closed for summer vacation until August 28. Industry financing
under scrutiny after First International Bank of Israel (FIBI) tightened
collateral requirements on diamond industry loans.
India: Slow trading and weak sentiment.
Dealers preparing for Hong Kong show. Polished inventory levels high as
manufacturing continues but demand slowed in the past few months. Steady demand
for commercial-quality, SI2-I2 diamonds. Other areas weak. Slow domestic demand
for stars and melee. Rough market stable with lower volumes traded and Russian
goods selling at steady premiums during monthly ALROSA sale.
Hong
Kong: Polished
trading sluggish with some improvement as dealers prepare for the September
show. Smaller suppliers discounting to maintain liquidity. Difficult for
medium-size companies to compete. Buyers selective and price sensitive. Jewelry
retailers struggling with high gold prices and weak consumer
demand.
|
|
|
|
|
|
|
|
|
|
Tags:
Rapaport News
|
|
|
|
|
|
|
|
|
|
|