Diamond markets
quiet, with select demand for better-quality SIs. Hong Kong show signals
improving sentiment among jewelers, but dealers cautious. Rough market stable,
with limited De Beers supply supporting prices that are reducing cutters’
profit margins. Manufacturers expected to reduce polished output in 3Q as
inventory levels rise. Petra Diamonds cuts production and sales outlook by 9% amid
expansion program delays. Firestone raises 2017 Liqhobong production plan +20%
to 360,000 cts. Luk Fook FY’17 revenue -9% to $1.6B, profit +7% to $132M. Birks
Group FY’17 revenue +0.4% to $287M, profit -9% to $4.9M. Global Witness warns
of online schemes to smuggle diamonds from CAR.
Fancies: Ovals have become best-selling fancy shape
for US market, with shortage of 3 ct. stones. Cushions gaining popularity. Steady
demand for Pears in the Far East. Emeralds improving and selling better than
Princesses in larger 2 ct.+ sizes. Some demand for big fancy shapes such as
Radiant, 3 ct.+, D-I, SI1-SI2 elongated stones, but buyers extremely picky.
Large price differentials between excellent- and average-cut fancies. Off-make,
poorly cut fancies illiquid and hard to sell, even at very deep discounts.
United States: Polished trading slow as dealers prepare
for summer vacation. Dealers closing out memos and outstanding payments before
the break. Steady demand for 1 to 3 ct., G-J, VS2-SI2 diamonds. Curved fancies
stronger than squares, with ovals the hottest item. Retail sales stable, with
focus on bridal during summer wedding season.
Belgium: Sentiment weak. Buyers filling immediate
needs, but not planning future supply. Rumors of large bankruptcy fueling
caution. Dealers stuck with old stock, holding prices firm for more liquid
fresh goods. Good demand for RapSpec A2+ SIs, but buyers struggling to find
goods at their price points. Steady demand for dossiers. Rough market stable,
with good demand for non-De Beers goods.
Israel: The market is stable as Hong Kong show
meets dealers’ low expectations. Steady demand for 0.30 to 1.49 ct., I-J,
VS-SI, RapSpec A3+ diamonds, with shortages in some sizes. Large availability
in the market, with some good buying opportunities in India. Good Far East
demand for lower I-J colors. Rough trading cautious amid tightening profit
margins.
India: Polished dealers cautious as US and Far
East demand remains sluggish after Las Vegas and Hong Kong shows. Inventory
levels rising as rough market remains strong and manufacturing levels at near-full
capacity. Expectations that manufacturing will slow in the third quarter.
Steady demand for 0.30 to 2 ct., H-J, SI, RapSpec A2+ diamonds. Concerns of
negative impact new GST tax laws may have on jewelry sales and diamond trading.
Hong Kong: Market sentiment improved during this
week’s June show. Strong emphasis on new pavilion with finished jewelry that
drew large crowds. Diamond section less busy. Buyers cautious and selective,
with good demand for 0.30 to 0.40 ct., H-I, VS-SI, RapSpec A2 diamonds. Fancy
color diamonds and gemstones generating greater interest. Retail jewelry sales
slightly improving.
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