Far East trading quiet during Chinese New Year.
Market cautious due to weak demand, tight profitability and reduced bank
credit. Selective buyers creating shortages of excellent-cut (3X, none)
diamonds, but prices of lower-quality goods softening due to excess supply. 1
ct. RAPI -0.4% in Jan. Manufacturers maintaining low production as profit
margins are squeezed by high rough prices. Letšeng 4Q sales -40% to $42M, average price -43% to $1,259/ct. Belgium 2018 rough imports flat at $10.7B. Pandora 2018 sales flat
at $3.5B, profit -13% to $773M. RapNet introduces jewelry to trading network. The Rapaport Group wishes all our
friends a happy and successful Chinese New Year.
Fancies: Fancy-shape market stable, driven by US and European demand for
fashion jewelry. Excellent-cut ovals, pears and emeralds doing well. Supply
shortage supporting prices for Pears. Radiants improving. Marquises and
Princesses weak. Steady demand for fine-quality 6 to 10 ct. Ovals, Pears and
Emeralds, with prices firming for 3 to 5 ct. due to shortages. Chinese
consumers seeking fancy shapes at better prices. US supporting market for
commercial-quality, medium-priced fancies under 1 ct. Off-make, poorly cut fancies
illiquid and hard to sell, even at very deep discounts.
United States: New York trading stable but lacking usual first-quarter buzz.
Shortage of better-quality diamonds supporting prices. Large availability of lower
qualities such as brown, green, milky (BGM) stones. A lot of goods out on memo.
Dealers concerned about lack of industry financing and growing demand for
synthetics. Retailers focused on Valentine’s Day promotions. Solitaire jewelry
selling well, and rose-gold rings gaining popularity.
Belgium: Dealer sentiment mixed amid sluggish
polished trading and concern about high rough prices. Fewer post-Christmas
orders than last year. 3X, no-fluorescence stones selling at firm prices.
Stable demand in 1 ct., H, VS1, 3X diamonds. Rough trading slow, with some
dealers making a loss on the secondary market.
Israel: Positive momentum from International Diamond Week at the end of
January. Niche suppliers of large stones, fancy shapes and fancy-color diamonds
doing well. Low availability of bread-and-butter, 1 ct., D-J, VS2-I1, RapSpec
A2+ goods, with buyers relying on overseas suppliers. Weak demand for 3 to 5
ct., D-H, IF-VVS2 diamonds, with prices softening despite low inventory.
India: Polished trading quiet. Foreign dealers
in Mumbai looking for bargains. Relatively low amount of new merchandise
available, as manufacturers keep production down due to tight profits and
sluggish demand. High gold prices weighing on jewelry retail sales. Jewelry
wholesalers and diamond dealers hoping for boost at next week’s IIJS Signature
show (Feb. 10 to 13).
Hong Kong: Jewelry wholesalers and diamond dealers on vacation during Chinese
New Year. Activity expected to resume in two weeks and pick up around the Hong
Kong show (Feb. 28 to Mar. 4). Polished inventory levels down since
January, but remain significantly higher than this time last year. Jewelers
focused on selling to Chinese tourists.
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