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Rapaport TradeWire March 16, 2017
Mar 16, 2017 6:00 PM
By Rapaport
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Rapaport Weekly Market Comment
March 16, 2017
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Positive sentiment spreads to trading centers
after Hong Kong show demonstrates good dealer demand for dossiers. Selective
buyers creating opportunities for suppliers with the best goods. Large volume
of new polished expected to fill shortages of better-quality RapSpec A2+
diamonds. Big-stone market improving ahead of Basel show. Rough market stable.
ALROSA 2016 revenue +41% to $5.5B, profit quadruples to $2.3B. Grib Diamonds
2016 sales +82% to $336M. Gem Diamonds 2016 revenue -24% to $190M, loss of
$144M vs. profit of $77M the previous year. U.S. Jan. polished imports flat at
$1.8B, polished exports -1% at $1.3B.
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| Diamonds |
1,236,139 |
| Value |
$7,603,902,582 |
| Carats |
1,345,085 |
| Average Discount |
-30.30% |
www.rapnet.com
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| The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network. |
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Get Current Price List | Subscribe to Rapaport | Join RapNet |
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QUOTE OF THE WEEK
At present, the industry is certainly facing some challenges, but we believe those challenges, as in the past, are short-term in nature.
Mark Light, chief executive officer of Signet Jewelers.
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MARKETS
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United
States: Positive sentiment with
steady demand and buyers looking for deals, particularly on GIA-dossiers…
Belgium: Steady activity raises
the mood in Antwerp. Buyers filling specific orders and careful not to build up
excessive inventory…
Israel:
Trading continues to
improve. Selective buyers looking for larger volumes in a narrower range of
categories…
India: Dealers more optimistic
than before the Hong Kong show. U.S. demand steady and Chinese demand continues
to improve. SIs moving well…
Hong
Kong: Positive mood continues
as dealers follow up on leads from the Hong Kong show. Suppliers selling larger
volumes of lower-priced goods…
Click here for deeper analysis |
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MARTIN RAPAPORT
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Martin Rapaport to Give Special Presentation at IDC
Martin Rapaport will give a special presentation at the
International Diamond Conference in Mumbai on March 20th, 2017. His
speech will discuss significant changes in U.S. tax policy that may have a
severe impact on the diamond and jewelry industry. Following the conference, Martin will be making an official statement on the matter.
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FIVE-MINUTE INTERVIEW
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Bringing Diamonds to a New Generation
Jean-Marc Lieberherr, CEO of the Diamond Producers Association
(DPA), outlines some of the challenges and goals facing the organization as it
works to change the industry’s narrative to raise consumers’ desire for
diamonds.
Click here to continue reading
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INDUSTRY
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U.S. Polished Imports Steady in January
U.S. polished-diamond imports were flat at $1.77 billion in
January, according to government data, maintaining the country’s role of
supporting industry demand through its stability. A slide in volume was balanced
by an 8% rise in the imports’ average price to $2,099 per carat. Polished
exports, meanwhile, slipped 1% year on year to $1.25 billion, raising net
polished imports 1% to $517 million. Rough imports nearly quadrupled, reaching
$120 million, while rough exports more than tripled to $56 million.
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Trade Leaders to Gather at Mumbai Conference
India’s Gem & Jewellery Export Promotion Council (GJEPC) will
host industry figures from across the world next week at a conference to mark
the organization’s 50th anniversary. Entitled “Mines to Market 2017,” the
two-day conference on March 19 to 20 will feature talks by ministers from
mining countries, representatives of diamond producers, and heads of retail and
luxury brands, the GJEPC announced.
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Sarine Brings Surat Business Under One Roof
Sarine Technologies has united all its Surat-based operations in
one building in the Indian diamond-manufacturing city. The new six-story
facility, Sarin House, spans 5,100 square meters and hosts about 400 staff
members, the Israel-based supplier of diamond-processing technology said. The
building will house customer care and support, along with services such as
Quazer laser processing, the Galaxy inclusion-mapping system, and the Sarine
Profile sales tool.
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RETAIL & WHOLESALE
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Chow Tai Fook Taps into Tokyo Tourism
Chow Tai Fook will open its first branded store in Japan, as the
weakening yen has increased Tokyo’s appeal to Chinese tourists. The Hong
Kong-based jeweler will launch an outlet inside Laox WATCH, a specialty
timepiece shop in Central Tokyo’s Shinjuku neighborhood. Chow Tai Fook said it was
seeking to tap into growing leisure
spending by Chinese tourists in Japan. The number of Chinese visitors to
the country jumped 28% to 6.4 million in 2016, according to the Japan National
Tourism Organization.
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Christie’s to Auction Famed Jonker Diamond
Harry Winston’s famous Jonker No. 5 diamond will be among the top
lots offered at Christie’s Magnificent Jewels auction in Hong Kong this May.
The rectangular-cut, 25.27-carat, D-color, VVS2-clarity diamond is expected to
sell for $2.2 million to $3.6 million, or up to $142,461 per carat, the company
said. The stone is one of 13 polished diamonds cut from the famous 726-carat
Jonker rough, which digger Jacob Jonker discovered at South Africa’s
Elandsfontein mine in 1934.
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Complex Patek Philippe Watch Up for Auction
Sotheby’s will auction what it claims is Patek Philippe’s most
complicated watch. The Calibre 89 pocket watch, which took Patek Philippe
almost 10 years to build, is estimated at $6.4 million to $9.9 million, the
auction house said. Unveiled in 1989 to mark the iconic Swiss watchmaker’s
150th anniversary, the yellow-gold timepiece has 33 complications, or features
other than the time display. It will lead Sotheby’s Important Watches auction
in Geneva on May 14.
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MINING
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ALROSA Profit Spikes amid Diamond Market Recovery
ALROSA’s profit quadrupled to $2.3 billion (RUB 133.47 billion) in
2016 from $554.2 million the previous year, as rough diamond demand improved
and the Russian ruble recovered against the dollar. Revenue grew 41% to $5.46
billion. Foreign exchange gains of $553 million boosted the bottom line,
following a 2015 loss from the weak ruble. ALROSA’s board this week approved
the appointment of Sergey Ivanov for a three-year term as president and CEO.
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Grib Diamond Sales Surge Ahead of Takeover
Lukoil’s diamond revenue nearly doubled to $335.8 million (RUB 20
billion) last year, ahead of the oil producer’s sale of the Grib mine. Sales of
rough stones stood at $184.7 million in 2015, having risen from $16.8 million in
2014, the miner said. The company announced the $1.45 billion sale of the mine
to Russian investment group Otkritie Holding last year, with the deal currently
subject to government approvals.
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Gem Diamonds Scraps Bonuses after Weak 2016
Gem Diamonds’ senior managers missed out on their performance-based
pay as the miner slid to a loss of $144 million in 2016. The decision not to
award Clifford Elphick, Michael Michael and Glenn Turner – respectively the
company’s chief executive officer, chief financial officer and legal chief –
their bonuses for the year came after revenue fell 24% to $189.8 million in
2016. The company noted a decline in the number of large diamonds extracted
from its Letšeng mine in Lesotho.
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Merlin Magics Up Green Diamonds in Australia
Merlin Diamonds has recovered five green diamonds at its Australian
mining operations, following the discovery of a rare blue diamond in December.
The largest of the green diamonds weighs 1.4 carats, and another is 0.21
carats. Independent experts are inspecting other green diamonds from the Merlin
mine besides these five, the company said. The diamonds surfaced at the mine’s
Kaye pit, part of the operations that the company acquired from Rio Tinto in
2004.
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GENERAL
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Barbara Wheat to Lead Asian Gem Institute
The Asian Institute of Gemological Sciences (AIGS) has appointed
Barbara Wheat as president. Wheat will be based at the AIGS headquarters in
Bangkok, Thailand, starting in late March. She will leave her current role as
executive vice president of the Natural Color Diamond Association (NCDIA), but
plans to open a Thailand chapter of the organization.
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JA Unveils CASE Award Winners
Jewelers of America (JA) announced the winners of its 27th annual
CASE Awards for jewelry design. Among them were Christian Caine Design of West
Virginia, which came first in the new People’s Choice category; The Gem Vault
in New Jersey, for two separate white-gold-and-gem pieces; Louisiana’s Aucoin
Hart Jewelers, for a pair of diamond, sapphire and pearl earrings; and Virginia’s
White & Ivory, for a ring featuring a Black Australian doublet opal, a
sapphire and diamonds.
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ECONWATCH
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Diamond Industry Stock Report
Diamond and jewelry stocks were mixed this week, with the
larger conglomerates leading the gains. Shares in Anglo American jumped (+12%) on
news that Indian billionaire Anil Agarwal may buy up to 13% in the De Beers
parent. Signet Jewelers rose (+6.1%) despite disappointing earnings as
management calmed concerns about sexual harassment charges. U.S. department stores were among the bigger
losers for the week with Macy’s declining (-4.6%) on reports of activist investor
Starboard selling its stake in the retail chain.
View the detailed industry stock report
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INDIA MARKET REPORT
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Polished Trading Activity
Polished market stable as dealers returned from positive
Hong Kong show. Dealers optimistic about the U.S. and hopeful the Chinese
market is starting to improve. Good demand for GIA dossiers, especially SIs. A
lot of imperfect goods (milky or black-spotted) on the market. Steady rough
demand as major manufacturers raise production levels.
Read the Polished Diamond Trading Report |
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