Positive sentiment, with rising expectations for the Chinese New Year
retail season. Busy trading at Israel’s International Diamond Week, with
momentum expected to continue through the Hong Kong show (Feb. 27). US
retailers restocking and hoping for positive Valentine’s Day sales, despite
recent drop in equity markets. Polished prices firm, with 1 ct. RAPI +2.2% in
Jan. Manufacturers concerned about rising rough prices cutting their profits.
Titan Company 3Q sales +7% to $670M, profit +21% to $44M. Rio Tinto 2017
diamond revenue +15% to $706M, earnings +96% to $92M. Gem Diamonds 2017 sales +12%
to $207M. Belgium 2017 polished exports -3% to $11.4B, rough imports -11% to
$10.7B.
Fancies: Fancy shapes mixed, with curves better than
squares. Ovals hot, followed by Pears and Cushions. Emeralds and Radiants OK,
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 New York trading, but dealers finding it
difficult to replace sold inventory at current prices. Shortages in select
categories influencing rise in manufacturing, despite concerns about higher
rough prices. Good demand for RapSpec A2+ SIs (3X, no-fluorescence). Jewelry
retail slightly slow in January, with some caution after recent stock-market
slump. Focus on engagement rings, with Valentine’s Day promotions.
Belgium: Positive sentiment. Good European demand for
HRD-graded diamonds. Steady dealer trading, with Israeli and Indian buyers in
Antwerp looking for goods. Far East demand slower as Hong Kong wholesalers
closed for the Chinese New Year. Good demand for 1 ct., F-G, VS diamonds. Rough
trading stable, with strong premiums for De Beers and Alrosa goods on the
dealer market.
Israel: Upbeat atmosphere during International Diamond
Week. Good local trading, and strong Indian, US and Chinese buyer presence.
Polished prices firm, supported by shortages of RapSpec A2+ diamonds. Good
demand for 1 ct., G-J, VS-SI (3X, no-fluorescence) diamonds. Bourse pushing
tech innovation to advance the country’s position in the global diamond trade.
India: Suppliers gaining confidence ahead of important
Hong Kong show. Manufacturers raising polished production as they prepare
inventory for the fair and in anticipation of good post-holiday US and Chinese
demand. Steady demand for 1 ct., I-L, SI diamonds. Increase in import duty on
polished diamonds to 5% will hurt the recutting sector. Steady jewelry-sales
growth for large, established brands.
Hong Kong: Wholesale market quiet as
dealers take vacation for Chinese New Year. Good demand for 1 to 2 ct., D-J, VS-SI,
RapSpec A2 diamonds. Focus shifts to retail, with jewelers optimistic for
growth during the important selling season that began this week. Online
retailers gaining market share, but at tight profit margins. Dealers preparing
for upcoming exhibition.
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