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Rapaport Weekly Market Comment
September 22, 2016
Sep 22, 2016 8:56 AM
By Rapaport News
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Sentiment improves at Hong Kong show (7/10) with steady
traffic but restrained buying ahead of National Day festival (Oct. 1). Good
demand for 0.30 to 2 ct., G-J, VS-SI diamonds but sales were limited
as suppliers refused very deep discounts. 3 to 4 ct. weak. Mixed demand for 5
ct.-plus. Picky Far East buyers shifting to lower price points and restricting
inventory purchases. Excess Chinese inventories have been coming down with some
buying to meet current demand. ALROSA Aug. rough sale +53% to $243M. Petra Diamonds
FY revenue +1% to $431M, profit +12% to $67M. India Aug. polished exports +11%
to $1.9B, rough imports +72% to $1.1B. De Beers, Mountain Province open Gahcho
Kué mine.
Fancies: Markets
slow. Large 5 ct.-plus fine-quality goods getting more interest. Curved fancy shapes
improving. Ovals and Pears steady. Square shapes slow.
Emeralds selling with improving large-stone demand. 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.
Global Comments
United States: Steady trading in New York with sentiment lifted
by positive reports from Hong Kong show. Dealers focused on filling orders for
the holiday season. Steady demand for 1 to 2 ct. G-J, VS-SI goods. Melee weak
due to concerns about synthetics and sluggish fashion jewelry demand. Bridal
market continues to grow.
Belgium: Trading more upbeat than before Hong Kong show.Good demand from U.S. retail programs.Steady demand for 0.30 to 2
ct., G-J, VS-SI diamonds. Curved fancy shapes improving. Some interest in 1
ct., D-F, IF-VVS goods from individual collectors but European high-end luxury
brands cautious.
Israel: Improved mood as dealers returned from Hong Kong.Steady demand for dossiers and 1 ct., G-J, VS-SI, GIA diamonds. 3 ct. weak
but prices firm for better-quality RapSpec A2, large stones (3X, none) due to
scarcity. Focus shifting to U.S. market for holiday orders. Continued
uncertainty regarding bank financing and negotiations with Tax Authority.
India: Stable market with steady U.S. demand. Chinese
demand improving but Far East still cautious after Hong Kong show. Melee weak
with pockets of better demand in +8 segment. Cushions and ovals steady, square
fancy shapes weak. Margins tight due to expensive rough with steady manufacturing
before Diwali (Oct. 30).
Hong Kong:Dealers focused on closing transactions from last
week’s show. Positive mood from the show. Slow sales did not reflect decent
buyer traffic. Cautious buyers pushed for higher discounts, while suppliers
held prices firm to protect margins. Hong Kong retail sentiment weak due to
tourist slump and high rentals. Chinese demand steady and growing at lower
price points.
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Tags:
Rapaport News
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