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Rapaport Weekly Market Comment
November 17, 2016
Nov 17, 2016 11:00 AM
By Rapaport News
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Indian
diamond industry under pressure with severe liquidity crisis as government
drastically reduces money supply by invalidating 500 and 1,000 rupee currency.
Rough trading slow with De Beers $470M Nov. sale smallest of the year. ALROSA
Oct. rough sales $431M. Sotheby’s Geneva sells $136M (87% by lot) with
emerald-cut, 17.07 ct., fancy intense pink, VVS1 diamond sold to Graff for $21M
($1.2M/ct.). Christie’s Geneva sells $97M (77% by lot) with pear-shape, 9.14
ct., fancy vivid pink, VS2 diamond fetching $18M ($2M/ct.). Belgium Oct.
polished exports -17% to $775M, rough imports -7% to $897M. JBT reports number
of U.S. jewelry businesses -5% to 27,142 in 3Q.
Fancies: Fancy-shape market stable.
Curved fancy shapes improving. Princess, 0.50 to 1 ct. waking up for U.S.
holiday season. Large sizes getting some interest, but buyers are extremely
picky. Fancy shape prices relatively soft in a buyer’s market. U.S. demand
supporting market for small-to-medium size, commercial-quality fancies. (H-J,
SI2-I2). Far East fancy demand weak. 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: Dealers
filling Christmas orders are maintaining firm prices. Difficult to negotiate
terms with suppliers for memo goods. Steady demand for 0.70 to 2 ct., G-J,
VS2-SI2 diamonds. Rising demand for 3 ct., RapSpec A2+ goods. Retail sentiment
improving after election. Jewelers increasing promotional activity but generic
marketing only expected to gain traction in 2017.
Belgium:
Market sentiment
positive and trading steady as dealers fill holiday orders. Improving European
luxury demand for 1 to 2 ct., D-G, IF-VVS RapSpec A2+ diamonds. Steady demand
for dossiers, G-H, VS-SI but buyers very picky and price sensitive. Curved
fancy shapes steady with pears and ovals the strongest shapes. Squares weak.
Rough market quiet after Nov. sight.
Israel:
Steady U.S.
demand before holiday season. Dealer trading slow but November better than
October. Lower trading volume and inventory levels compared to last year,
particularly for 0.30 to 0.99 ct. RapSpec A3 diamonds. Steady demand for 2 ct.
and larger, J-L, IF-VS1 diamonds. Rough market stable. Relatively large
delegation of diamond suppliers participating in next week’s Hong Kong
International Jewelry Manufacturers’ Show.
India:
Cautious mood as
jewelry demand and diamond trading slows due to government demonetization
program. Lack of liquidity mutes activity. Smaller companies under pressure.
Large diamond and jewelry exporters better positioned, with steady U.S. and
Chinese demand as rupee -3% in past week to INR 68/$1. Dealer demand for small,
low-quality rough declines after currency ban. Factories still closed for
Diwali to reopen Nov. 21.
Hong
Kong: Polished
trading slow with selective demand for Hong Kong Christmas season. Steady
demand for 1 ct., G-J, VS1-SI2 diamonds. Chinese demand stable with positive
sentiment after Alibaba’s record $17.7B online Single’s Day (11/11) sales but
polished orders for Chinese New Year (Feb. 28) slower than previous years. Low
expectations for next week’s International Jewelry Manufacturers’ Show (Nov. 24-27)
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Tags:
Rapaport News
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