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Rapaport Weekly Market Comment
September 15, 2016
Sep 15, 2016 8:08 AM
By Rapaport News
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Positive
atmosphere at Hong Kong show with trading slightly better than low expectations.
Buyers maintain cautious outlook for holiday season. Far East retailers requiring
less inventory as China expansion slows. Suppliers holding prices to minimize
losses from expensive rough. De Beers estimates 2015 global rough sales -30% to
$13.7B, rough production -0.7% to 141M cts. with value -10% to $17.5B, average
price -8% to $124/ct. Insight report notes millennials driving growth but diamond
content in jewelry sales -2% to $24.7B last year. Dominion 2Q sales -24% to
$160M, loss of $33M vs. loss of $18M a year ago. Richemont jewelry sales -16%
in first five months, warns 1H profit -45%.
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: Stable market with dealers watching for
trends from Hong Kong show. Buyers selective and pushing for higher discounts.
Suppliers focused on liquid items as demand is narrower and quieter than usual
for this time of year. Steady demand for 1 ct. H-K, VS-SI diamonds. Retailers
preparing holiday inventory.
Belgium: Positive sentiment
with large delegation of Antwerp suppliers holding firm prices at Hong Kong
show. Pointer sizes stable. Steady demand for 0.90 to 2.99 ct., D-G, VS-SI, 3X,
diamonds. Profitability tight after rough premiums increased in dealer market
during August / September sight. European luxury jewelry market uncertain ahead
of holiday season.
Israel:Dealers
relieved at steady Hong Kong show following long, inactive summer. Large-stone
demand specific with lack of available top-quality, 5 ct.-plus (RapSpec A2+, 3X,
none) diamonds. Steady dealer demand for 0.30 to 0.50 ct., G-J, VS-SI, 3X
diamonds. U.S. orders stable as retailers prepare for holiday season. Far East
demand cautious as major jewelers cut back on inventory.
India: Polished market
stable with suppliers maintaining prices at Hong Kong show. Indian buyers
looking for bargains. Melee market okay with pockets of good demand. Polished
production steady before Diwali break despite low manufacturing margins. Better
to buy polished than manufacture rough.
Hong Kong: Busy activity with
steady traffic at Hong Kong show. Conservative Far East buyers limiting
inventory orders. Supplier discounts restricted by higher rough premiums. Major
jewelers expect continued volatility with restrained outlook for October 1
National Day Golden Week. Hong Kong retail weak, China stable.
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Tags:
Rapaport News
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