|
|
Rapaport TradeWire September 29, 2016
Sep 29, 2016 6:00 PM
By Rapaport
|
|
|
|
|
|
|
|
|
| |
|
|
| |
| |
|
Rapaport Weekly Market Comment
September 29, 2016
|
|
|
Diamond
market stable. Positive sentiment in the trading centers despite lower than
usual holiday orders. U.S. retailers driving demand but consumers cautious amid
election uncertainty. Chinese jewelry demand steady ahead of National Day
festival (Oct. 1). Polished inventory rising as manufacturers raise production before
Diwali vacation (Oct. 30). Steady prices but weaker assortments reported at relatively
small De Beers Oct. sight. Rapaport
offices will be closed on Monday and Tuesday (Oct. 3-4) due to Rosh Hashanah. Best
wishes to all for a happy, healthy, peaceful and prosperous Jewish New Year.
|
|
RapNet Data: September 29
|
| Diamonds |
1,258,329 |
| Value |
$7,944,164,659 |
| Carats |
1,340,019 |
| Average Discount |
-30.46% |
www.rapnet.com
|
 |
| The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network. |
|
|
|
|
Get Current Price List | Subscribe to Rapaport | Join RapNet |
|
| |
QUOTE OF THE WEEK
The diamond business generally has been quite slow to adapt. People need to think very differently in the future.
Bruce Cleaver, CEO of De Beers, speaking to the Financial Times
|
|
|
|
MARKETS
|
|
|
|
|
| |
United
States: Dealers
cautious as trading slow for this time of year. Presidential election adding to
uncertainty. Inventory rising with new Indian supply outpacing sales before
Diwali break…
Belgium:
Positive
sentiment continues after Hong Kong show. Steady demand for 0.30 to 3 ct., D-H,
VS2-SI, VG+ diamonds. Improving melee demand…
Israel:
Upbeat
mood despite cautious trading after Hong Kong show. Dealers filling orders
before Oct. Jewish holiday period…
India: Polished
trading stable with steady demand for stars and melee for the U.S. market. -2’s
weakest melee category. Steady demand for 0.30 to 2 ct., D-J, VS-SI diamonds…
Hong
Kong: Regular
activity returns after positive September show improves mood. Price sensitive
Chinese buyers driving demand…
Click here for deeper analysis
|
|
|
|
INDUSTRY
|
|
|
|
|
| |
Top Diamond Lot Fails to Sell at Sotheby’s NY
Sotheby’s
Important Jewels sale in New York garnered $9 million as its headline piece
failed to find a buyer. Bids for the oval, 27.35-carat, D-color,
VS2-clarity diamond and platinum ring did not meet its reserve price after
Sotheby’s estimated it would sell for $2 million to $2.5 million, or up to
$91,408 per carat. The auctioneer did not disclose the highest bid it received
for the stone.
|
| |
Botswana’s Diamond Exports Extend Decline
Botswana’s rough diamond exports continued a retreat in
August, underlining the country’s need to diversify its economy as it
celebrates 50 years of independence. Outbound shipments fell 5% to $399.7 million, according to data from the Bank of Botswana.
|
| |
CAR Set to Increase Diamond Exports
The
Kimberley Process (KP) declared three new ‘compliant zones’ in the Central
African Republic, meaning diamond exports from those regions can resume after a
suspension of more than two years. The KP’s monitoring team approved shipments
from the sub-prefectures of Boda, Carnot and Nola in the west of the country.
CAR was re-admitted to the KP in May and two shipments have already been made
from the Berberati region.
|
|
|
|
RETAIL & WHOLESALE
|
|
|
|
|
| |
U.S. Jewelry Prices Jump in August
The U.S.
consumer price index (CPI) for jewelry increased 4% in August from the previous
month, according to the U.S. Bureau for Labor Statistics. The reading was 9%
higher than a year ago. The August CPI for watches fell 1.5% month on month and
rose 6% year on year. The CPI for jewelry and watches combined jumped 2% from
July and 8% from a year earlier.
|
| |
Swiss Watches Face Worrying Time
Swiss
watch executives are increasingly pessimistic about the industry’s prospects, according to Deloitte, as
timepiece exports slumped to the lowest level in five years in the first half. The proportion of industry leaders who expect the market
to go pear-shaped stands at 82%, while 65% are downbeat about the country's
main export markets for the next 12 months. Swiss watch exports fell 7% to $9.8
billion (CHF 9.5 billion) in the first six months of the year.
|
|
|
|
MINING
|
|
|
|
|
| |
Sales Slump Highlights 'Despair' at Rockwell
Rockwell
Diamonds sales slumped in its fiscal second quarter because of operational and
financial management issues. Sales dropped 21%
to $7.6 million after group production declined 15% to 4,747 carats during the
quarter that ended August 31. A general breakdown in controls, inadequate
work planning and the lack of project front-end loading has led to a series of
financial management concerns and business risks, newly appointed CEO Tjaart
Willemse claimed.
|
| |
Dominion Sells Largest Ekati Diamond on Record
Dominion
Diamond Corp. sold a 186-carat diamond, the largest recovery on record from the
Ekati mine, for $2.8 million. The gem-quality stone was found at the
Pigeon kimberlite pipe at Ekati in June, before a fire halted operations at the
mine. The company suspended mining at the Lynx and Pigeon open pits to save on
costs, while it spent $15 million on repairs. The plant returned to full
operational capacity September 21.
|
| |
Lulo Mine Yields Another Massive Diamond
Lucapa
Diamond Company recovered a 172.67-carat, D-color, type-IIa diamond from its
Lulo mine in Angola. The stone is the fifth diamond above 100 carats found at
Lulo this year. A Lucapa rough sale achieved an average price of $1,868
per carat as the miner garnered $4.1 million (AUD 5.3 million) for a parcel of
2,209 alluvial diamonds. The next sale in October will feature the 172-carat stone and a 104-carat diamond recovered earlier this month.
|
| |
Diamond Miner Spurns South Africa's Richest Man
The board
of Trans Hex Group advised shareholders to decline a takeover bid from South
Africa’s richest man, after a panel of independent members found the offer
undervalues the company. Consultants hired by the independent board members
valued the company at $0.59 (ZAR 8) per share, compared with $0.29 (ZAR 3.94)
per share offered by a consortium of bidders that included retail tycoon
Christo Wiese.
|
|
|
|
GENERAL
|
|
|
|
|
| |
Record Blue Topaz to Go on Show
A 9,381-carat polished topaz will go on display
at London’s Natural History Museum from October 19. The world’s largest
flawless blue topaz measures 15 centimeters by 10.5 centimeters. Named the Ostro stone, It was treated
to give it a vivid blue color. The original rough was discovered 30 years ago by explorer Max Ostro in Minas Gerais, Brazil.
|
| |
Gemfields Boosted by Rising Emerald Demand
Gemfields’
revenue and profit surged in the past fiscal year, driven by record prices and
successful marketing campaigns to raise demand for the colored gemstones. Sales
jumped 13% to $193.1 million and profit after tax soared 90% to $23.5 million. Marketing
efforts have built up the profile of its Zambian emeralds, Gemfields said.
|
|
|
|
ECONWATCH
|
|
|
|
|
| |
Diamond Industry Stock Report
Mining shares mainly gained this past week, led by Gemfields (+21%) after it reported promising results and strong demand for emeralds. U.S., European and Far East retail stocks mostly declined, headed by JCPenney (-4.5%). Australia-listed Michael Hill showed a contrasting performance, its stock soaring (+40%) from a relatively low base.
View the detailed industry stock report
| |
Sep 29 (12:54 GMT) |
Sep 22 (11:15 GMT) |
Chng. |
|
| $1 = Euro |
0.89 |
0.89 |
0.00 |
|
| $1 = Rupee |
66.90 |
66.64 |
0.26 |
|
| $1 = Israel Shekel |
3.76 |
3.76 |
0.00 |
|
| $1 = Rand |
13.80 |
13.48 |
0.32 |
|
| $1 = Canadian Dollar |
1.31 |
1.30 |
0.01 |
|
| |
|
|
|
|
| Precious Metals |
|
|
|
Chng. |
| Gold |
$1,318.62 |
$1,334.85 |
-$16.23 |
-1.2% |
| Platinum |
$1,025.10 |
$1,052.00 |
-$26.90 |
-2.6% |
| Silver |
$19.04 |
$19.90 |
-$0.86 |
-4.3% |
| |
|
|
|
|
| Stock Indexes |
|
|
|
Chng. |
| BSE |
27,827.53 |
28,773.13 |
-945.60 |
-3.3% |
| Dow Jones |
18,339.24 |
18,293.70 |
45.54 |
0.2% |
| FTSE |
6,921.10 |
6,926.89 |
-5.79 |
-0.1% |
| Hang Seng |
23,739.47 |
23,759.80 |
-20.33 |
-0.1% |
| S&P 500 |
2,171.37 |
2,163.12 |
8.25 |
0.4% |
|
|
|
|
INDIA MARKET REPORT
|
|
|
|
|
| |
Polished Trading Activity
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).
Read the Polished Diamond Trading Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|