Polished trading improves in Belgium, Israel
& Hong Kong as India shuts down for Diwali. US holiday orders driving
sales, with buyers pushing for deeper discounts. Polished inventory high, but
shortages of select RapSpec A3+ SIs. Rough market slow with Indian factories
closed. Alrosa 3Q sales volume -10% to 7.5M cts, production -6% to 10.3M cts. De
Beers 3Q sales volume +21% to 6.9M cts, production +46% to 9.2M cts. Petra
Diamonds 1Q sales -17% to $79M. Luk Fook 2Q same-store sales +17%, gem-set
jewelry +16%. Signet Jewelers completes $960M sale of prime credit program.
J.C. Penney rebrands jewelry unit with lower-priced smartwatches and bridal
line for millennials.
Fancies: Ovals selling well in US. Pears and Cushions steady. Squares soft,
with declining interest in Princesses. US demand supporting market for
commercial-quality, medium-priced fancies under 1 ct. Selective buyers of
large, fine-quality fancy shapes facing limited supply. Far East demand
improving as consumers seek fancy shapes at better prices. Off-make, poorly cut
fancies illiquid and hard to sell, even at very deep discounts.
United States: Sentiment weak. Dealers’ margins squeezed as polished prices have
softened. Steady demand for 1 to 2 ct., G-H, VS2-I1 diamonds. Improved trading
in large stones above 5 ct., which offer better margins than smaller commercial
diamonds. Buyers looking for goods at deeper discounts. Retailers preparing for
holiday season.
Belgium: Polished trading increases after seasonal third-quarter slowdown.
Indian dealers on Diwali vacation.Steady demand for 1 to 1.50 ct., F-I, VS-SI, RapSpec A3+ diamonds. Dossiers
slow. Rough trading quiet with concern over high polished inventory levels.
Israel: Activity improving after
Jewish holiday break. Sentiment relatively positive, despite rumored bankruptcies.
Steady demand for 1 ct., G-H, VS-SI, RapSpec A3+ diamonds, driven by US holiday
orders. Large volume of goods out on memo. Rough market stable with rise in
large-stone activity in Ramat Gan.
India: Market quiet with
most businesses still closed for Diwali. Trading expected to resume next week
(October 30), while Surat factories to remain closed until mid-November.
Manufacturers hoping shutdown will help rebalance inventory levels. Strong
diamond-jewelry sales compensated for weak gold sales during Diwali, according
to Economic Times report.
Hong Kong: Sentiment
rising as jewelers prepare for Christmas and Chinese New Year seasons. Retailers
gaining confidence and resuming store expansion in China. Dealers focused on
0.30 to 1 ct., D-H, VS-SI, RapSpec A2+ diamonds. Online retailers starting
early 11/11 Singles’ Day promotions.
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