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Rapaport Weekly Market Comment
Sep 8, 2016 11:00 AM
By Rapaport News
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All eyes on Hong Kong as
industry focuses on important Far East show. Sentiment in cutting centers is
positive with improved dealer trading but show expectations are mixed and
uncertain. Polished prices stable in anticipation of the show with Aug. 1 ct.
RAPI -0.8%, 0.30 ct. flat, 0.50 ct. +0.2%, 3 ct. +0.2%. Profitability under
pressure as rough premiums firmed after $630M De Beers sale as cutters increase
production before Diwali. Belgium Aug. polished exports +17% to $399M, rough
imports +9% to $659M. U.S. July polished imports -20% to $1.8B, polished
exports -2% to $1.4B. HRD Antwerp fires three employees, bans client after uncovering
grading discrepancies at Mumbai lab.
Fancies: Markets slow. Large 5 ct.-plus fine-quality goods getting
more interest. Ovals and Pears steady. 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: Polished trading improved slightly with dealers preparing
holiday inventory. Profitability squeezed after long period of sustained price
declines. Dealers waiting for Hong Kong show to signal market direction. Steady
demand for 1 to 3 ct., VS2-SI, H-J, 3X diamonds, with a lot of requests for
goods on memo. Wholesalers and retail jewelers cautious after slow summer sales.
Belgium: Sentiment improving head of Hong Kong show. Steady Far East
demand for 0.30 to 0.50 ct., D-H, VS-SI goods. U.S. and European buyers
cautious. Improving dealer demand for large stones above 5 ct., D-H,
VS-SI. Dossiers slow. Rough trading
steady but higher rough premiums squeezing manufacturing and dealer profits.
Israel: Positive mood with good activity at monthly Blue & White
Fair. Dealers looking at wider variety of diamonds to fill existing orders.
Some uncertainty about prices as dealers expect Indian manufacturers will try
to raise prices to cover higher rough costs. Steady demand for 1 ct., D-H,
VS1-SI2 diamonds. Stable U.S. demand for memo goods.
India: Dealers focused on Hong Kong show hoping stronger trading
will raise liquidity. Large volumes expected on display at the show. Polished inventory
increased due to steady manufacturing amid slow 2Q and 3Q polished sales. Stable
demand for 1 ct., H-M, VS-SI diamonds. Rough trading steady as factories ramp
up production before closing for Diwali (October 30).
Hong Kong: Trading slowed slightly with buyers waiting for
next week’s show. Sentiment cautious as local jewelry retail remains
slow and large-scale buyers already holding a lot of inventory. Steady Chinese
bridal demand for 0.30 to 0.50 ct., D-H, VS-SI diamonds with jewelers preparing
for October 1 National Day festival.
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Tags:
Rapaport News
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