US sanctions Russia, including Alrosa and its CEO. No sanctions on doing business with Alrosa but banking system shut down. Significant supply disruptions expected to impact market. Alrosa is the largest rough producer with 2021 sales of 45.5M cts. for $4B, profits of $834M. Diamond trading robust, but sentiment weakened by economic and geopolitical uncertainty. 1 ct. RAPI +5.6% in Feb. despite concerns that inflation, higher interest rates and Ukraine war will dampen global consumer confidence. Chow Tai Fook signs rough supply deal with Mountain Province. Sarine Technologies 2021 revenue +52% to $62M, profit of $17M. Rapaport to host webinar titled “Politics, Economics, and Diamond Prices: Dealing Diamonds Amid a New World Order” on Monday, March 7, at 12 p.m. EST. Register here.
Fancies: Market robust. Good demand across all sizes. 1.20 to 3.99 ct., F-J, VS-SI is hottest category and seeing scarcities. 0.30 to 0.99 ct. improving in VS and better clarities. Fancies below 0.30 ct. showing significant gains since Diwali. Supply shortages supporting prices. Retailers offering broader product ranges as consumers seek alternative shapes. Growing interest in fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Oversizes trading at higher prices than usual. Excellent shapes commanding premiums. Steady demand in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.
United States: Trading steady, but buyers unwilling to pay asking prices. 3X goods selling at low discounts and difficult to find. Some buyers shifting to fancy shapes above 1.50 ct., which offer better prices than rounds in same categories. Focus on better-quality VVS-VS diamonds rather than SIs. Slight fall in large-stone, big-ticket items. Very few inventory purchases. A lot of memo orders, which are turning into invoiced sales.
Belgium: Rough dealers concerned that US sanctions on Alrosa will restrict Russian supply. Rough shortages driving premiums on secondary market. Solid polished trading despite high prices. Large stones selling well.
Israel: Positive environment for sellers. Buyers looking for goods but struggling to find the right polished at reasonable valuations. Dealers focused on filling US demand, with strong memo orders. 1 ct., G-J, VS-SIs selling well. Concerns about potential supply shortages and US economic slowdown resulting from Russia-Ukraine war.
India: Trading sluggish compared with the boom in January and February. Buyers lacking urgency and resisting higher prices. Small goods healthy, particularly -2 sieve size and stars, VVS-VS. Fancy shapes above 1.50 ct., G-K, VVS-VS selling well. Favorable appetite for rough amid decline in volume available.
Hong Kong: Wholesale and retail quiet due to pandemic. Government urging people to stay home as infections spread and mortality rate rises. Jewelers relying on engagement ring demand, but sales down for suitable 0.80 to 1 ct., D-G, VS (3X, no fluorescence) diamonds. China market relatively slow. Gold jewelry robust as consumers seek hedge investment during period of global uncertainty.
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