Dealers gaining confidence, with firm prices
and steady demand expected in 1Q. Far East orders slowing as jewelers complete Chinese
New Year preparations. Shortages supporting prices. Robust rough market during
De Beers sight as cutters increase production. Fewer independent US jewelers -4%
to 26,031 in 2017. Michael Hill closing US stores as 1H global sales +5% to
$273M. Forevermark holiday sales volume +38%. De Beers 2017 sales +10% to 35.1M cts., production +22% to 33.5M
cts., average price -13% to $162/ct. Rio Tinto 2017 production +21% to 21.6M
cts. India 2017 polished exports +2% to $23.1B,
rough imports +11% to $18.5B. Ronnie VanderLinden reelected US DMIA president.
Fancies: Fancy shapes mixed, with curves better than squares. Ovals hot,
followed by Pears and Cushions. Emeralds and Radiants okay, Princesses still
weak. Oversizes selling well. Steady demand for fine-quality 6 to 10 ct. Ovals,
Pears and Emeralds, with limited supply. US supporting market for
commercial-quality, medium-priced fancies under 1 ct. 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: Steady trading during India week at the new Diamond Dealers Club
in International Gem Tower (50 W 47th street). Optimistic mood among
dealers, with buyers actively looking for RapSpec A2+ (3X, no fluorescence)
goods. Shortages due to reduced manufacturing. Jewelers preparing inventory for
Valentine’s Day, with focus on engagement and bridal collections.
Belgium: Positive sentiment, with good dealer demand for RapSpec A2+
diamonds. Suppliers holding prices firm. Steady interest in 0.90 to 3 ct., I-K,
VS-SI diamonds. Low polished inventories fueling rough demand. Improved
premiums on the secondary rough market during De Beers sight week.
Israel: Dealers optimistic for first-quarter polished sales. Stable trading,
but suppliers waiting for post-Christmas restocking by US jewelers. Good demand
for 1 ct., G-K, VS-SI diamonds. Rough market busy, with 2% to 3% rise in dealer
premiums since beginning of the year. Profit margins improving, with firm
prices for polished manufactured from rough bought a few months ago in weak
market.
India: Polished market
slightly quieter. Far East orders down, since jewelers have already purchased inventory
for the Chinese New Year. Prices supported by shortages and steady dealer
demand. Strong interest in 0.50 to 2 ct., F-H, VS-SI diamonds. Polished
production rising as large volume of new rough enters the market. Good rough
demand during De Beers sight.
Hong Kong: Good start to 2018, with rising expectations for Chinese New Year
retail season. Chinese jewelers taking more goods on memo. Solid market for
0.30 to 0.50 ct., E-G, VS-SI (3X, no fluorescence) diamonds. D-G, VVS stones
selling well. Jewelers pushing themed fashion pieces for Year of the Dog holiday
season.
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