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Rapaport Weekly Market Comment
Jun 30, 2016 11:00 AM
By Rapaport News
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Sentiment
weak as Brexit vote adds to economic uncertainty and Hong Kong show
disappoints. Stock markets volatile, currencies weak, gold rallies (+4% to
$1,320/oz) as investors seek assets with store of value. Polished trading slow
with Chinese buyers pushing for deeper discounts and U.S. dealers heading for
July vacation. Rough markets stable with 3 to 6 grainers softening at auctions.
De Beers sells $560M in June, 1H sales +12% to estimated $3B. Lucara’s 1,109
ct. ‘Lesedi la Rona’ rough diamond does not sell with high bid $61M
($55,000/ct.) at Sotheby’s London. U.S. May jewelry retail sales +4% to $6.3B.
AWDC reelects Stéphane Fischler president.
Fancies: Ovals and Pears
doing well. Cushions supported by specific orders. Emeralds selling with
improving large-stone demand. Princess and Hearts slow. Top quality fine-cut
fancy shapes OK but buyers are extremely picky. Overall fancy shape prices
relatively soft. U.S. demand supporting market for commercial-quality fancies,
especially for sizes under 1 ct. Far East fancy demand weak. Buyers are very
selective and insisting on excellent-shape proportions. Significant price
differentials between excellent- and average-cut fancies. Off-make, poorly-cut
fancies illiquid and very hard to sell, even at very deep discounts.
United
States:
Polished trading stable with dealers filling orders before two-week July
vacation period. Steady demand for 1 to 3 ct., G-I, VS2-SI2 diamonds, while
larger stones remain weak. Ovals and pears supporting fancies market. Dealers
cautious about cushions. Retail sales stable but jewelers concerned about
skittish consumers in election year. Diamond Dealers Club of New York will be
closed from July 1 to 11.
Belgium: Polished trading
slow at quiet Hong Kong show and Antwerp market sluggish. Wholesalers avoiding
large inventory purchases with concern prices will soften in coming months.
Focus on commercial qualities with steady demand for 1 ct. G-J, VS-SI diamonds.
Weak demand for higher-end D-F, IF-VVS1 goods with buyers pushing for higher
discounts. Rough trading stable but slightly slower than last month.
Israel: Market slow as
dealers return from Hong Kong show. Overall concern about lagging demand as
lower prices fail to stimulate sales. Steady Chinese demand for 0.50 ct., D-J,
IF-SI2 and 1 ct., D-H, IF-VS2 RapSpec A2 diamonds. U.S. demand steady but
seasonally slow. Rough demand stable with lower prices at auctions for 3 to 6
grainer rough that yield under the carat polished.
India: Sentiment weak with
dealers disappointed at Hong Kong show. Chinese demand cautious and fewer
buyers in Mumbai ahead of U.S. vacation period. Demand is order-specific with
buyers avoiding inventory purchases and pushing for higher discounts. Stable
demand for 1 ct., D-H, VS-SI diamonds. 3 ct. steady in SI’s, weak in other
areas. Manufacturing levels steady with new rough coming to factories after
June sight. Rough trading stable with good demand from smaller manufacturers.
Hong
Kong:
June show small and quiet. Retailers went to assess market trends and push for
bargains. Suppliers willing to compromise on price had relatively busy show.
Good demand for fancy colors and select fancy shapes. Rounds under pressure
with demand focused on SI’s and shortage of larger-size 5 ct.+, SI’s. Jewelry
retailers adjusting to lower consumer spending.
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Tags:
Rapaport News
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