|
|
Market Comments 9/12/2013
Sep 12, 2013 6:00 PM
|
|
|
Hong Kong show opens with steady traffic and cautious buying. Dealer, retailer and consumer demand very price sensitive with strong focus on SI-I1 goods and continued shift to lower qualities. IF-VVS qualities relatively weak. Manufacturers moving to 3X cut quality as buyers become selective and top cuts bring greater premiums. Rough trading weak as sightholders rejected expensive De Beers goods. Dominion 2Q sales +48% to $262M, loss of $19M vs. $5M profit. Hong Kong 2Q polished imports +6% to $4.4B, exports +3% to $2.8B. THE RAPAPORT PRICE LIST WILL NOT BE PUBLISHED SEPT. 20 & 27 DUE TO SUCCOT HOLIDAY. Visit http://www.diamonds.net/TradeScreen for continuously updated RapNet prices.
Fancies: Bigger, better very fine-cut fancy shapes holding up well as buyers find it increasingly difficult to find the “right goods” that meet their specific demand. Sellers holding back as shortages keep market firm. Buyers finding scarcity at HK show. Regular goods not hot although U.S. demand is good for commercial qualities. Off-make poorly-cut fancies selling at very deep discounts. As with rounds, SI-I1 qualities are best sellers in carat and under sizes. Buyers very selective regarding shape- and cut-quality with extreme price differentials between excellent and average cut fancy shapes.
Global Markets
United States: Retailers continue to maintain low inventory levels and are prepared to further delay their Christmas buying in order to gain more confidence regarding prices. Jewelers are managing their inventory more efficiently and are able to fill orders. There is good demand for 0.30 to 1-carat, G-, VS-SI, triple EX diamonds. Diamond buyers have been traveling to the trading centers looking for goods and are keeping a watch on prices at the Hong Kong Jewellery & Gem Fair, which runs from September 11 to 17. Bridal goods are the mainstay of sales at the retail level.
Belgium: Activity in Antwerp is still quiet with selective polished demand and many dealers in Hong Kong for the show. U.S. and European demand is stable while the Far East remains cautious. There is steady demand for round, 0.30 to 1-carat, F-H, VS-SI, GIA-certified diamonds and improving demand for VVS2 clarity goods in those sizes. Demand for better-quality, dossier, VVS1+ goods remains weak. Rough trading is slow as prices are high with De Beers boxes selling at a loss on the secondary market.
China: Wholesale trading is stable but demand has been cautious ahead of the Hong Kong show. The strongest items remain the 0.30 to 0.40-carat, D-H, VS-SI, GIA-certified goods. Diamond buyers have been uncertain about prices and prepared to wait for the show before making larger-scale purchases. There is some pent up retail demand as jewelers are maintaining low inventory and are looking toward improved sales during the upcoming Golden Week that begins on October 1.
Hong Kong: The market has been focused on the jewelry fair, which opened on Wednesday. In the days leading up to the show, trading was limited to immediate demand and prices were cautiously stable. There has been good demand for 0.30 to 0.40-carat, D-H, VVS2-SI diamonds, with slower trading in 0.60 to 0.90-carat diamonds. There is stable demand for 1-carat, VS-SI diamonds. Far East buyers have been optimistic about the show with some expectation that prices will soften slightly as the week progresses.
India: The market is quiet with many in the industry taking off for the Jain festival, Paryushan, that took place during the week, and as many dealers traveled to Hong Kong for the show. Local buyers are still cautious despite the recent recovery in the rupee rate against the dollar, while polished exports remain steady. Retail jewelry sales are similarly conservative despite the rupee’s rebound and lower gold prices. Liquidity remains tight and cutters are limiting their manufacturing levels to fill specific requirements. Rough trading is slow due to high prices and the volatile exchange rate.
Israel: Trading in the Israel Diamond Exchange is quiet as many suppliers and dealers are in Hong Kong and due to the bourse being closed during the Jewish New Year (Rosh Hashanah) holiday that took place last week. There remains an optimistic mood in the exchange and polished prices have held relatively firm with stable U.S. demand. There is steady demand for 0.30 to 1-carat, G-H, VS-SI and good demand for larger diamonds above 5 carats.
|
|
|
|
|
|
|
|
|
|
Tags:
|
|
|
|
|
|
|
|
|
|
|