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Rapaport Weekly Market Comment
Jan 26, 2017 11:00 AM
By Rapaport News
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Market hoping next week’s Spring Festival will signal renewed
growth in the Chinese jewelry market. Diamond manufacturing increasing despite
sluggish U.S. post-holiday demand. Profit margins under pressure as rough
prices rise at larger-than-expected $720M De Beers sight. Miners anticipate
strong rough market in 2017. ALROSA plans 2017 production +6% to 39.2M cts.
Petra Diamonds 1H sales +48% to $229M, production +24% to 2M cts. De Beers 2016
sales volume +55% to 32M cts, average price -10% to $187/ct., production -5% to
27.4M cts. Chow Sang Sang warns 2016 profit fell 30%-40%. Blue Nile unveils
diamond buyback scheme. David Block to replace Uzi Levami as Sarine CEO.
Fancies: Fancy-shape demand improving slightly with shortages
of fine-quality, large Pears and Ovals. Cushions making comeback. Emeralds
selling better than Princesses. Some demand for big fancy shapes, but buyers
extremely picky. U.S. demand steady, Far East fancy shape demand weak. Large
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: Trading relatively slow. Some buzz at India
Diamond Week in New York with dealers assessing available inventory and prices
rather than closing deals. Trade anticipating steady first quarter with
jewelers expected to replenish inventory sold during holiday season. Retailers
preparing for Valentine’s Day with heavy promotions for engagement and wedding
jewelry.
Belgium: Polished market quiet with rising concerns about
profitability following price increases at De Beers sight. Steady demand for 1
ct., D-F, IF-VVS, RapSpec A2+ diamonds to satisfy European luxury demand.
Commercial qualities stable. Steady rough trading with large volumes available
at mid-single-digit percent premiums.
Israel: Quiet market as dealer trading has slowed. U.S. demand is
order-specific while suppliers wait for larger post-holiday inventory requests.
Far East demand expected to remain quiet until Hong Kong show (Feb. 28). Stable
demand for 0.30 to 0.89 ct., D-J, VVS-I2 diamonds. Trading slow in
better-quality RapSpec A2+ goods, despite steady interest from buyers as
suppliers refuse higher discounts.
India: Polished trading cautious with buyers uncertain about
prices. Shortages in select categories but large volume of goods are in
production. Polished inventory projected to rise in time for Hong Kong show
(Feb. 28) after large De Beers sight. Manufacturing profit under pressure.
Market starting to acclimate to demonetization but small businesses still
cautious amid tight liquidity. Steady demand for 0.30 to 3 ct., D-H, SI,
RapSpec A3+ diamonds.
Hong Kong: Dealer and wholesale markets quiet with most
companies on vacation for next week’s Chinese New Year festival (Jan. 28).
Isolated orders for larger 1 to 5 ct. stones ahead of the season but the focus
is now on consumer demand. Optimism in mainland China, while Hong Kong retail
remains weak. Consumers shifting to lower price points with 0.30 to 1 ct., G-J,
SI, RapSpec A3+ diamonds gaining popularity.
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Tags:
Rapaport News
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